The stock can be bought at current levels and on dips towards Rs 2,110 and a stop loss below Rs 2,060 for a target of Rs 2,300.
HDFC Bank had witnessed a breakout from the consolidation zone of Rs 2,030-1,910 in late November last year and since then it is trading in a range. It has been consolidating between Rs 2,150 and Rs 2,030 for the last 10 weeks.
The recent decline in the stock has taken support at its 200-day moving average and bounced back to the upper end of the range.
Currently, the stock is trading at a breakout level of the pattern. MACD line has given a positive crossover with its average and moved above the equilibrium level of zero on the daily chart that suggests a change in trend from sideways to up.
Thus, the stock can be bought at current levels and on dips towards Rs 2,110 and a stop loss below Rs 2,060 for a target of Rs 2,300.
The author is Head of Technical and Derivatives at Sanctum Wealth Management.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.