Technical Analysis

Stock query: HDFC Bank in a short-term sideways trend

Yoganand D | Updated on May 10, 2020

To alter the medium-term downtrend, the stock needs to decisively rally above ₹1,100

Here are the answers to readers’ queries on the performance of their stock holdings.

I bought the stock of HDFC Bank at ₹950. Can I hold it for a long term?

Rajagopalan J

HDFC Bank (₹928.9): Following a sharp fall in early March, the stock of HDFC Bank registered a 52-week low at ₹738.9 in late March. Subsequently, the stock reversed direction and began to trend upwards. Since then, it has been in a corrective short-term uptrend.

However, the stock encountered a key resistance at ₹1,000 and started to trend downwards. Over the past one month, it has been broadly trading in the wide band between ₹850 and ₹1000.

A slump below the lower boundary can pull the stock down to ₹800 and then to ₹750 levels over the medium term. The next key support is at ₹700.

On the upside, an emphatic break above the immediate resistance level of ₹1,000 will strengthen the corrective rally and take the stock northward to ₹1,050. To alter the medium-term downtrend that has been in place from the December 2019 high of ₹1,304, the stock needs to decisively rally above the crucial resistance level of ₹1,100.

Such a break above this barrier will strengthen the uptrend and take the stock northwards to ₹1,180 and 1,250 levels. The subsequent resistance is at ₹1,300.

Inventors with a long-term perspective can buy in declines and stay invested with a stop-loss at ₹785 levels. You can also stay invested with this stop-loss.

What is short-term outlook of Petronet LNG horizon?

Ashish Pathrabe

Petronet LNG (₹224.6): Since taking support at ₹171 in late March, the stock of Petronet LNG has been in a short-term uptrend.

While trending up, it breached a key resistance at ₹204 and the 21-day moving average in early April. But, the stock met with a key resistance at ₹245 last week and started to decline

The stock hovers above the key level of ₹220. A slump below this level can pull it down to ₹210 and then to ₹204.

A decisive fall below the crucial support level of ₹204 will mar the short-term uptrend and drag the stock down to ₹180 and then to ₹170 levels.

Investors with a medium-term view can buy in declines with a stop-loss at ₹190.

A conclusive break above ₹245 can accelerate the uptrend to ₹256 and then to ₹275 over the medium term.

Send your queries to

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on May 10, 2020
This article is closed for comments.
Please Email the Editor