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should you buy HDFC bank stock on every dip of Indian stock market



 Should you invest in HDFC bank stock for Long term ?

If the name of any bank is taken first among Indian Private Banks, then it is HDFC Bank. All the best customer services out of private sector banks are considered by HDFC Bank in the private sector. If we talk about the CASA ratio also, then the CASA ratio of HDFC Bank is the best among the private banks in Indian. HDFC Bank has a huge portfolio; the management of the bank is well managed for many years. Mastercard,  international debit card with the association of VISA, first offered by HDFC bank in India.

Today we will discuss the Fundamentals of HDFC Bank and Short Term Price of HDFC Bank, Long Term Price of HDFC Bank. First of all let us understand the business model of HDFC Bank in brief.

HDFC bank Business model:

HDFC Bank Ltd is one of the largest private banks in Indian banking Industry which offers large number of banking services to wholesale & retail customers. HDFC bank has strong presence into the commercial as well as in retail segment. We will discuss the hdfc bank three main business segments from which HDFC bank is generating its business.

The wholesale banking services of HDFC bank include large corporate & Blue-chip manufacturing companies of Indian. In the segment bank caters midsized and small sized corporate. Bank has also focus on the Agri business in same segment. Corporate, Small & Medium Enterprises, Financial Institutions & Trusts & Government Sector comes under this segment.

In the retail segment business of HDFC bank the main focus of the bank to provide full range of banking services to all customers a one-stop window for their all requirements. HDFC bank has best service into the retail segment. This is the reason that more customers or people want to open their accounts with this bank. From last many years bank has more focus on the online banking for their domestic as well as NRI clients. Home loans personal loan, educational loan, credit card services, Auto loan etc are the famous financial products which are into the demand.

In the Treasury business segment HDFC bank has main business into three areas like Derivatives, Local currency, money market, foreign exchange Debt securities & equities. HDFC bank does focus on the managing returns & market risk on investment portfolio

The banking financial services like services fixed deposit, forex, credit, investment & insurance, these all financial products are generating the business for the hdfc bank.

HDFC bank has strong client base of NRI clients & bank is offering Banking services like Accounts &, Investments, Insurance Loans Payment Services, Deposits, Remittances.

HDFC bank fundamental analysis:

HDFC bank total revenues from FY17 to FY21

As we have already discuss the demand of the hdfc bank in India as well as in overseas. Now we will try to calculate the financial results of HDFC bank and future growth of HDFC bank.  If we will check last 5 years the financial results of HDFC bank the in FY17 total revenues reported by hdfc bank was nearly 73,268cr, In FY18 we had see slightly jump in hdfc bank revenues and reached above 85,270cr. But after FY18, hdfc bank has show increase in numbers of total revenues from FY19 to FY21 which was 105158cr to 128552cr. Which is very good record in any private sector bank.

HDFC bank net profit from FY17 to FY21

If we will calculate the net profit of the HDFC bank in FY17 bank had reported more than 15,280cr net profit which has doubles from FY17 to FY21.  FY 21, hdfc bank net profit reported nearly 32,000cr .Therefore we can say that in last 5years hdfc bank net profit more than double in FY21 if we will compare with last 5 financial years.

HDFC bank earnings per share:

W have seen jump in EPS in FY19 which was recorded nearly 83 but in FY21 it decreased to 57 per share but still HDFC bank has better EPS as compared with other private sector bank of India. HDFC bank has also maintain ROE in last 5 years which is nearly 15.5 .

Gross NPA’s of HDFC bank:

The best thing is about HDFC bank is that this private sector bank has maintained its net & gross NPA’s which is very good thing in the banking industry. In the last 5 years, HDFC bank has been maintaining gross NPA around 1%. Net NPA’s of hdfc bank is 0.4% in FY21.

Long term target in HDFC bank stock:

After analysis all above factors we are maintaining our positive view on HDFC bank stock for long term investment point of view. Long term in HDFC bank is 1980rs+. HDFC bank stock is a portfolio stock. It is ones of the best private bank stocks which investors can accumulate on every dip of the market. If Indian stock market comes down in the coming days as a part of profit booking & HDFC bank stock also comes down then it will be best buying opportunity to add this stock into the portfolio. Now we will discuss the technical levels in HDFC bank stock.

What are the short term  targets of HDFC bank stock?

Let us Set trading strategy in HDFC bank stock. On technical charts, HDFC bank stock made 52 weeks high of 1725rs & 52 week low 1342rs. From the higher levels stock has already correct nearly 185rs per share & Current price of HDFC bank stock price in NSE is 1539rs (closing price of 18-Nov-2021).

1) Buy HDFC bank stock above 1548.50rs with the stoploss of 1522.80rs on closing basis, short term trading targets in HFC bank stock is 1556.80, 1562.50rs, 15.71.80rs, 1578.80rs, 1588.20rs, 1595.50rs, 1601rs.

2) If HDFC bank stock gives close above 1605rs on closing basis then raise you stoploss to 1577.50rs (closing basis) & medium term target of hdfc bank is 1612rs, 1620rs, 1628rs, 1635rs+

3) If HDFC bank gives close above 1638rs then raise you stoploss to 1615rs and hdfc bank stock target will be 1685rs to 1700rs +or we may see new 52 week highs in HDFC bank stock.

Must note that:

 We have discuss price targets in HDFC bank stock on the basis of Technical charts we have discussed three scenario. Please follow the strict stoploss and buying levels.

 Should you sell HDFC bank stock?

Indian stock market is trading at very higher valuations and we may see profit booking anytime into the Indian stock market. Therefore we will also give lower levels price levels HDFC bank stock for traders

Sell HDFC bank stock:

1) If in the coming days with the profit booking into Indian stock market HDFC bank stock will also come down then it will be good opportunity for short seller to make new positions.

If HDFC bank stock break 1527rs price level then keep stoploss of 1539.80rs closing basis & lower level price targets in HDFC bank stock will be 1518rs, 1512rs, 1508rs, 1500rs, 1495rs, 1488rs, 1482rs, 1477rs. We may see some bounce back in HDFC bank stock from these support levels. Book you profit as per your comfort level.

2) If HDFC bank stock break price level of 1472rs on closing basis Then downside will be opened more in HDFc bank share. We may see lower price levels in HDFC Bank upto 1450rs to 1420rs ore more.

Must Note that:

As of now there is no weak signal on technical charts of HDFC bank stock. We have discuss both buying or selling levels in HDFC bank. Please follow the given price levels for making any buying or selling positions. These all Levels are for traders. For long term investors HDFC bank stock is BUY. Accumulate in small number of sets.

Disclaimer:

We always try our level best to published best stock for our website viewers with price targets. Our view may differ from others. Please do your own research to before taking any decision of buy or sell. 

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