HDFC has been consolidating in a narrow range between the levels of Rs2,231-2,598 for last two weeks.
On Friday, the stock made an attempt to breakout from the higher-end of this trading range. In addition, the gain in the stock price from a low of Rs2,318 in the current week has been on back of increasing volumes, indicating strong buying at the support levels.
We expect the stock to break-out past the higher-end of the trading range. The daily RSI is already in strong buy mode. The stock has closed above all its key daily moving averages. A move past the levels of Rs2,550 could take the stock towards the levels of Rs2,620 and Rs2,650 levels in the short-term.
Keeping in mind the above-mentioned evidences, we recommend high risk traders to BUY the stock between the range of Rs2,520-2,550 with a stop loss of Rs2,490.