Business

HDFC, HDFC Bank shares dip around 3% after a strong rally on profit booking

HDFC, HDFC Bank share price: A day after rallying over 9 per cent, the shares of private sector lender HDFC Bank and mortgage lender Housing Development Finance Corporation (HDFC) slipped up to 3 per cent lower in the morning deals on Tuesday amid profit booking, analysts said.

The HDFC Bank stock fell 3.07 per cent to Rs 1,605.55 apiece on the BSE while the HDFC Ltd scrip declined 2.41 per cent to Rs 2,614.40 per share during the early deals on Tuesday.

Both the stocks had surged on Monday following the announcement of their merger with HDFC skyrocketing 19.64 per cent on NSE in intraday trade on Monday. It eventually settled at Rs 2678.90, up 9.30 per cent on the BSE and at Rs 2,676.00, up 9.12 per cent on NSE.

Likewise, the HDFC Bank stock too had surged 14.35 per cent on NSE in intraday trade Monday. In the end, the lender’s share ended at Rs Rs 1656.45, up 9.97 per cent on the BSE and at Rs 1,654.10, up 9.83 per cent on NSE.

Speaking to indianexpress.com on phone, Ravi Singh, Vice President and Head of Research at Share India Securities said, “HDFC stock rose almost 19 per cent and HDFC Bank jumped around 14 per cent yesterday. So there is bound to be some profit booking after such a rally.”

However, he noted that “HDFC Bank is showing a bullish trend on major momentum indicators like RSI, MACD, Williams and 200 DMA. The surge in volume and a breakout above it’s strong resistance of Rs 1,525 levels has confirmed the bullish formation in the counter. With this thrust, HDFC Bank may touch the levels of Rs 1,850 in near future.”

Vinod Nair, Head of Research at Geojit Financial Research too felt that there’s some correction in the two stocks after the strong rally in the previous session. Speaking to indianexpress.com, Nair said that it will take around 12-18 months for the merger to be completed and it needs to be seen how this develops going ahead with securing all the approvals.

He added that both the companies will have to look into the cross-holdings in their subsidiaries such as HDFC Life where the merger may increase the holding of the entity beyond the IRDAI norms. However, he noted that the valuation of the group is very cheap and on a 5-year average it makes sense to be invested in the group.




Source link

The Press Walla

The Press Walla is the India's fastest growing youth online magazine which covers all latest trending stories from entrepreneurship, business, entertainment etc

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button