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HDFC Technical Analysis

The financial services sector is crucial for economic growth, contributing 36.51% to Nifty50, and strong performance in this sector leads to increased consumer earnings. HDFC Bank, established in 1994, has a significant presence in India with over 1,416 branches and a robust financial position post-mergers. Recent analyses of HDFC Bank's stock show trends indicating potential price increases, with various indicators suggesting optimal buy and sell points based on market conditions.

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36 views4 pages

HDFC Technical Analysis

The financial services sector is crucial for economic growth, contributing 36.51% to Nifty50, and strong performance in this sector leads to increased consumer earnings. HDFC Bank, established in 1994, has a significant presence in India with over 1,416 branches and a robust financial position post-mergers. Recent analyses of HDFC Bank's stock show trends indicating potential price increases, with various indicators suggesting optimal buy and sell points based on market conditions.

Uploaded by

rushimate09
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1.

Financial service sector:

The financial services sector is the primary driver of a nation's economy. It provides the
free-flow of capital and liquidity in the marketplace. When the sector is strong, the economy
grows, and companies in this industry are better able to manage risk. The strength of the
financial services sector is also important to the prosperity of a country's population. When
the sector and economy are strong, consumers generally earn more.

Sectoral wise weightage for financial services is 36.51% in nifty50.

4.1 HDFC BANK


The HDFC Bank was incorporated on August 1994 by the name of 'HDFC Bank Limited',
with its registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995. The Housing Development Finance
Corporation (HDFC) was amongst the first to receive an 'in principle' approval from the
Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's
liberalization of the Indian Banking Industry in 1994.HDFC Bank is headquartered in
Mumbai. The Bank at present has an enviable network of over 1416 branches spread over
550 cities across India. All branches are linked on an online real-time basis. Customers in
over 500 locations are also serviced through Telephone Banking. The Bank also has a network
of about over 3382 networked ATMs across these cities. The promoter of the company HDFC
was incepted in 1977 is India's premier housing finance company and enjoys an impeccable
track record in India as well as in international markets.. As per the scheme of amalgamation,
shareholders of CBOP received 1 share of HDFC Bank for every 29 shares of CBOP. The
merged entity now holds a strong deposit base of around Rs. 1,22,000 crore and net advances
of around Rs. 89,000 crores. The balance sheet size of the combined entity would be over Rs.
1,63,000 crores. The amalgamation added significant value to HDFC Bank in terms of
increased branch network, geographic reach, and customer base, and a bigger pool of skilled
manpower. In a milestone transaction in the Indian banking industry, Times Bank Limited
(another new private sector bank promoted by Bennett, Coleman & Co. / Times Group) was
merged with HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two
private banks in the New Generation Private Sector Banks.

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DESCRIPTIVE STATISTICS OF HDFC BANK LIMITED

descriptive statistics of HDFC

Mean 969.9802
Standard Error 10.18857
Median 953.3
Mode 1033.35
Standard Deviation 94.48494
Sample Variance 8927.403
Kurtosis -0.92387
Skewness 0.039435
Range 370.85
Minimum 767.7
Maximum 1138.55
Sum 83418.3
Count 86

From the descriptive statistics of HDFC bank helps to know what is the maximum, minimum
and median share price for the past 4 months.

TREND LINE

TREND OF HDFC
1200

1000

800

600

400

200

0
20-Mar-20 20-Apr-20 20-May-20 20-Jun-20 20-Jul-20

The trend line of Hdfc by comparing the actual and future predicted share price for the past
four months shows the upward trend expecting the price increase in the near future. According
to dow theory this trend is known as primary trend.

38
RELATIVE STRENGTH INDEX

RSI OF HDFC
90
80
70
60
50
40
30
20
10
0

Interpretation

From the RSI ( Relative strength index) of HDFC bank limited from the past 4 months
shows that at the beginning of the June and July month shows the bearish market as the RSI value
is above 70. It shows the overbought region and that is selling time for the investors and trend
reverses At the may month shows the bullish market the RSI value is below 30 such that is oversold
it is the right time to buy the stocks of HDFC for the future changing of the investors.

BOLLINGER CHART CHART

BOLLINGER CHART OF HDFC


1200
1100
1000
900
800
700
600

Close Price SIMPLE MOVING AVERAGE


UPPER BOLLINGER BAND LOWER BOLLINGER BAND

39
INTERPRETATION

In the above Bollingers graph of HDFC, the middle, is 20 day SMA. The higher-level, is 20 day
SMA addition with 2 standard deviations. The poorer, is 20 day SMA subtract with 2 standard
deviations. It is used to determine the particular stock is overbought or oversold. When the price
reaches the higher-level, it is overbought and it implies sell indications in days of June. When
price reaches the poorer, it is oversold and it implies buy indications i.e., in the mid of may.

MACD ANALYSIS

MACD CHART OF HDFC


100

50

-50

MACD LINE SIGNAL LINE

INTERPRETATION
When the Macd falls below the signal line it is a bearish signal which indicates that it may be time to sell.
Converstly, when the MACD rises above the signal line, the indicator gives the bullish signal, which suggests that
the price of the asset is likely to experience upward momentum indicates the time to buy. In the HDfC bank at the
start of the month shows the price shows the bearish and In the start of the june shows the bullish
market.

OHLC CHART

OHLC OF HDFC
1500

1000

500

0
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85

Open Price High Price Low Price Close Price

40

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