"The rise in volumes with fall in price suggests a long unwinding into the stock which points towards further correction into HDFC Bank prices," Shitij Gandhi, senior technical research analyst at SMC Global Securities, said in an interaction with Moneycontrol.
Given the stock trading below Rs 1,600 levels, he advised traders to use wait and watch strategy.
However, on the IT space, Shitij, with more than 15 years of experience in technicals, says traders are shifting towards defensive space given the fall in equity markets. "So we can see buying into the IT, most of the frontliner already given breakout to the chart."
Is it a great opportunity to buy into HDFC Bank?
HDFC Bank witnessed a steep correction of more than 8 percent on January 17 after its Q3FY24 numbers were declared. Technically, the stock has given a sharp correction below its 200 DEMA (day exponential moving average) of Rs 1,595 on a daily interval which is not a good sign for the stock moving forward.
The rise in volumes with a fall in price suggests a long unwinding into the stock which points towards further correction into the prices.
It is trading below Rs 1,600 levels, we advise traders to remain conscious to the stock and there would be good opportunity to go long on HDFC Bank on lower level. So again wait and watch strategy should be used.
Where is the Nifty headed now? Technically do you think the Nifty is still range bound?
Technically, after making the record high, the Nifty 50 has witnessed a deep correction with a 2 percent slump in a single session, making it the worst one day we have witnessed in the last 19 months.
On a short-term chart, 21,500 should be the make-or-break level for the index. if the Nifty reaches 21,500 in a short term perspective, further sell-off can be seen towards 21,300. As of now, we are a bit conscious on the Nifty particularly.
Do you really see another 1,000 points fall in Bank Nifty?
No, we can see 300-400 points fall, but not 1,000 points fall in the Bank Nifty as of now in one session. We are not bearish on Bank Nifty. Bank Nifty could find support near 45,550 zone.
What is your take on Nifty IT as it has seen big breakout last week?
As of now, we are looking at profit-booking into the market, particularly in banking stocks, so, somewhere traders are now shifting towards the defensive space and IT is one of them.
On technical ground, IT is given a big break out on the chart. So, as I said that traders are shifting towards defensive space, we may see some buying into the IT, most of the frontliner already given a breakout to the chart.
TCS, Wipro, Infosys stocks are somehow seeing a long build-up in the pricing. So, we are bullish on IT from here.
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.
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