HDFC Bank | 55% returns | Breakout of 5 year resistance

Oct 24

| HDFC BANK |

Monthly time frame
Stock has been riding the white upward parallel channel since 2008
Stock riding above 20-, 50- & 200- month moving averages
RSI = 60, indicating bullish momentum
MACD crossover completed and is above the 0 line, indicating bullish momentum
Highest volumes in Aug, followed up buying in Sep and Oct

Weekly time frame
Stock has been consolidating between 1300 to 1800 since 2019
Possibility of breakout of 3-year resistance trend line at 1800
Stock riding above 20-, 50- & 200-week moving averages
Stock has recently tested all 3 moving averages and bounced back
RSI > 60, indicating bullish momentum
MACD extending the crossover & above the 0 line, indicating bullish momentum
Highest volumes in last week of Aug, followed up by buying in subsequent weeks

Daily time frame
Stock has been in trading in an upward blue parallel channel since Jan 2024
Breakout of this upward parallel channel seems to be on the cards
Stock riding above 20-, 50- & 200-day moving averages
RSI > 60, indicating bullish momentum
MACD completed crossover & is above the 0 line, indicating bullish momentum

Conclusion
Entry: 1,800
Stop Loss: 1,600
Target 1: 2,000
Target 2: 2,400
Target 3: 2,800

Fundamental metrics
PE (19) < 20 {Ideal scenario}
ROE = 17% {Ideal > 15}
Earnings Yield = 6.23% {Ideal > 5%}
PEG ratio = 0.82 {Ideal < 1}
FII + DII participation increased in last Quarter
Net interest margins = 3.5% {Ideal < 4%}
Capital adequacy ratio = 20% {Ideal > 12%}
Gross NPA ratio = 1.36% {Ideal < 3%}
Return on assets = 1.9% {Ideal > 1%}
Cost to income ratio = 40.6% {Ideal < 50%}