HDFC Bank’s share price is predicted to experience a significant breakout, potentially reaching an upside of 35% to 38%.
According to Laurence Balanco, a technical analyst at CLSA, this bullish trend has been closely monitored and is now on the verge of coming to fruition.
Laurence Balanco has been meticulously observing HDFC Bank’s share, which has been trading within a defined range since early 2021.
This range is marked by resistance levels at ₹1,717 and ₹1,734, and support levels between ₹1,240 and ₹1,245.
A decisive close above these resistance points would signify a major bullish development, ending over two years of stagnant price movement.
Balanco’s technical analysis suggests that breaking out of this range could set a new upside target of ₹2,373.
This prediction underscores the potential for a substantial increase in HDFC Bank’s share price, marking a pivotal moment for investors.
On Tuesday, global brokerage firm Bernstein maintained its “outperform” rating on HDFC Bank, setting a target price of ₹2,100.
Bernstein analysts expect the bank’s return on assets to rise from 1.8% to 2.1% over the next four years.
This positive outlook from Bernstein adds further credibility to the bullish predictions made by CLSA.
Since January 2024, HDFC Bank has seen a notable increase in its market capitalization, surpassing ₹13 lakh crore.
Despite a slight dip of 0.67% in its share price, which settled at ₹1,690.10 on Thursday morning, the overall trend remains optimistic.
Several factors contribute to the anticipated breakout and potential upside for HDFC Bank’s share price:
While the outlook is predominantly positive, investors should remain aware of potential risks:
HDFC Bank’s share price appears poised for a breakout with an upside potential of up to 38%, according to CLSA.
The stock’s movement beyond its long-standing trading range could mark the beginning of a new growth phase, supported by strong fundamentals and positive market sentiment.
Investors should stay informed about the bank’s performance and broader economic indicators to make well-informed decisions.
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