HDFC may decline to Rs 680, says Harchekar

Amit Harchekar of IIFL is of the view that, Housing Development Finance Corporation (HDFC) is expected to fall towards Rs 685-680 mark.

Harchekar told CNBC-TV18, "Yesterday we had recommended short on HDFC Ltd and we are still holding the stock. I am expecting the stock to correct down to Rs 685-680 levels in the short-term." He further added, "HDFC Bank was the first stock which started the correction since August 16, rest of the PSU banks have almost collapsed thereafter. So I believe HDFC Bank would now turnout to be underperformer compared to the PSU banks." "We can expect good outperformance from State Bank of India (SBI), Bank of Baroda (BOB) and Punjab National Bank (PNB) and HDFC Bank is expected to drift lower and test levels of Rs 575-560." Disclosures: We have recommended few positions to our clients but no personal holdings.