HDFC Bank shares decline most in 2 years: Do you want to buy this dip? Check this analyst's short-term target, stop loss

HDFC Bank shares see profit booking in trade.

• HDFC Bank shares hit 52-week low after chairman resigns.
• Stock fell 8.7 percent, later settled down 5.11 percent.
• RBI says HDFC Bank remains sound with no material concerns.

Did our AI summary help?

HDFC Bank share price declined sharply on Thursday, hitting a fresh 52-week low after part-time chairman Atanu Chakraborty resigned, citing ethical concerns, raising governance worries among investors.

The stock fell as much as 8.7 percent to Rs 770 per share on the NSE. It opened gap-down with similar losses and extended the decline for a second straight session. The shares later recovered some ground to settle at Rs 800, down 5.11 percent.

At the day’s low, the stock recorded its steepest fall in more than two years and was among the top losers on the benchmark Nifty50 index.

Om Ghawalkar, market analyst at Share.Market (PhonePe Wealth), said HDFC Bank has been in a "decisive Stage 4 decline" since January 5, 2026, correcting more than 20 percent.

"While these levels may offer value for long-term investors, it is advisable to wait for a confirmed reversal in both the stock and the broader market before building fresh positions," he said.

He added that immediate support for the stock is seen in the Rs 700–715 range, while resistance is placed between Rs 850 and Rs 860.

The broader banking index also witnessed selling pressure. The Bank Nifty index ended 3.39 percent lower at 53,451.

Ghawalkar said the index formed a "gravestone doji" on the daily chart, indicating a bearish reversal. "The index has immediate support at 52,600, while resistance is seen at 56,300," he added.

Following the developments, brokerage firm Macquarie removed HDFC Bank from its marquee buy list.

Meanwhile, HDFC Bank said the part-time chairman’s exit could be due to a rift with the management team and maintained that there were no material issues at the bank.

The Reserve Bank of India (RBI) said HDFC Bank remains a domestic systemically important bank with sound financials and a professional management.

"There are no material concerns on record regarding its conduct or governance," the central bank said in a statement.

The RBI has approved the appointment of former HDFC Group executive Keki Mistry as interim non-executive chairman for three months. Mistry said there had been no discussion on governance issues within the board.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.