HDFC Bank Limited (HDFCBANK) Stock - Complete Technical Analysis - Sep 24, 2024

HDFC Bank Technical Analysis: Key Support & Resistance Levels for Traders

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. In today's technical analysis, were focusing on HDFC Bank Limited, currently trading at 1768.05. This price positions the stock 1.45% below its 52-week high of 1794.0, reached on July 3, 2024, and 29.67% above its 52-week low of 1363.55, which occurred on February 14, 2024.

The stock exhibits a bullish pattern with the formation of "Three White Soldiers," indicating strong upward momentum. The Average Directional Index (ADX) stands at 34.61, suggesting a strong trend, while the Relative Strength Index (RSI) at 80.27 indicates the stock is overbought, signaling a potential pullback or consolidation in the near term.

Looking at the moving averages, the price is above the key Exponential Moving Averages (EMAs), with the 10 EMA at 1710.68 and the 200 EMA at 1588.88, providing strong support. Notably, the current price is well above these levels, confirming bullish sentiment.

For support, traders should watch the levels around the classic pivot point at approximately 1635.38 and the more immediate support near 1710.68. On the resistance side, key levels to watch include the recent highs of 1781.65 and 1794.0. Additionally, the volume-weighted moving average at 1658.58 adds another layer of support beneath the current price.

Other indicators like the MACD, showing positive momentum, and the Awesome Oscillator indicate bullish continuation. However, with the Stochastic RSI at 100, it suggests a potential need for caution, as prices may be due for a correction.

In conclusion, while HDFC Bank shows strong bullish trends and potential for further gains, traders should remain vigilant for signs of pullbacks as the stock trades in overbought territory.