BackIndia Infoline puts SELL on HDFC Bank
India Infoline puts SELL on HDFC Bank
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HDFC Bank has seen a sharp value erosion since recording its 52-week high of Rs1,825 in mid January 2008.
The stock hit a 52-week low of Rs890 levels in mid July 2008 and then moved up smartly to record a high of Rs1,387 levels in September 2008 before correcting back to Rs1,000 levels in Friday’s trade.
The price movement of the stock since September 2006 till date appears to have taken form of a head and shoulder pattern with a rising neckline. This formation is an acclaimed reversal pattern and indicates bearish implication on future price movement.
A breakdown from the said pattern would be confirmed when the share price closes below the neckline currently placed around Rs1,000 levels.
We recommend traders to initiate short positions at current levels and on price rallies to resistance levels of Rs1,080 - 1,120 for target of Rs900, and Rs840. A stop loss above Rs1,135 is recommended on all short positions.
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