The long-term outlook remains positive for HDFC Bank but the stock looks negative in the short-term. The stock finds an immediate support at ₹1,470 and the crucial one at ₹1,395. A close below the latter has to potential to drag HDFC Bank to ₹1,251. On the other hand, a conclusive close above ₹1,605 will reconfirm the bullish trend and can lift the stock to ₹1,710.
A close below ₹1,463.20 will start making the position profitable. Exit the position if the loss mounts to ₹5,000 or at a profit of ₹15,000.
Alternatively, traders could consider going short on HDFC Bank futures. This strategy is strictly for high-risk investors. Stop-loss can be placed initially at ₹1,557 which can be shifted to ₹1,538 if the counters open on a weak note. Traders could aim for a target of ₹1,470.
Follow-up: As advised, hold L&T bear-put spread strategy till the monthly expiry.