HDFC Bank Shares Breakout Trading Strategy.

The merger of HDFC Bank and HDFC was completed on July 1, 2023, and it is India’s largest merger and acquisition deal. This merger has resulted in several changes to the bank, including its size, customer base, shareholder structure, and asset transfer. However, more than one year after the decline, the stock has nearly recovered its losses, gaining 12% to return to its all time high. After reaching an all time high of Rs 1,794 in July 2023, HDFC Bank shares sharply declined to Rs 1,588 following the release of its first post merger quarterly results, which failed to meet market expectations. For a major part of its journey from the lows, the stock was in a consolidation phase between the Rs 1,680 level on the upside and Rs 1,600 on the downside. It was later in September that the stock broke above the resistance level of Rs 1,680. The stock has maintained a long term uptrend, with this trend suggesting that if the stock can break above the current resistance range of Rs 1,780 – Rs 1,790, there is further upside potential. This means that even though there is a lot of buying pressure, there could be a slight pullback. Important support levels are at Rs 1,730 and Rs 1,705 which if the market retreats, may present a better entry point. Alternatively, a pullback to the Rs 1,730 – Rs 1,700 support zones could offer an even better risk- reward setup, with the goal of a return to the Rs 1,780 all time high. In the event of profit-taking, a strong support around Rs 1,700 is anticipated. Meanwhile, the shares of HDFC Bank closed flat at Rs 1,782.30 on the BSE on Thursday.