As per technical analysis, HDFC is looking weak and could drift till Rs1,180 in the short-term. The momentum indicators KST is in sell mode on daily chart.
The stock is also showing, a Bearish Head and Shoulder Pattern signaling more downside. The downside target of this pattern is at Rs1,000 and stop loss will be at 10DMA which is Rs1,420.
In the near-term, we expect that could be an intra day bounce till the Neckline levels, which is around Rs1,300, but this rise should be used as a selling opportunity.
We recommend going short with downside target of Rs1,000 and stop loss at Rs1,420.