Aditya Agarwal of Way2Wealth is of the view that above Rs 840, HDFC may test Rs 880-890. "One may take long positions in the stock in Rs 790-785 range with a first target of Rs 840," he adds.
Aditya Agarwal of Way2Wealth told CNBC-TV18, "HDFC has already seen a very sharp run up in last three-four trading sessions. At higher levels we see Rs 830-840 is a very strong resistance level on HDFC. So from those levels, some profit booking cannot be ruled out, but overall structure for HDFC is still bullish."
He further added, "In these last four-five days rally, we have seen a lot of long positions getting build up. So that will support HDFC at lower levels. If the stock breaks Rs 840 level then we are expecting HDFC to test Rs 880-890 levels, so overall structure is still positive, but this is not a time to make long position in HDFC."
"Let the stock correct a little bit. If it comes in the range of Rs 790-785, there it will give you a better risk reward ratio. So that will be a range where one can make long position with a first target of Rs 840 and if that is broken then Rs 880 will be the next target," Agarwal said.
Disclosure: Stock which he discussed, he has recommended to his clients also, but personally he doesn't hold any position.