HDFC Bank share price outlook: HDFC Bank shares today ended the day at Rs 1202.35 on the NSE, up by almost 0.3 per cent. The medium term trend of this counter looks positive, Technical Analyst Nilesh Jain of Anand Rathi says.  

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Jain however, expected small consolidation, hinting a correction in this stock. This stock has seen a strong rally of 200 points from the levels around Rs 1040 to Rs 1240 during the last month. This stock has already moved significantly, Jain said adding that the current scenario is of some price correction. 

Investing in this stock may not give high returns in the near term, Jain said suggesting the “right” levels for buying this stock at Rs 1160-Rs 1170. He said that he is expecting some profit booking and that could be the opportunity buy in this stock. The current strategy is to buy on dips, he said. 

He went on to say that other private banks are positioned better for good returns in comparison to HDFC Bank. The movement looks more sideways now. 

Once this phase is over, the bank is poised for a fresh rally. He advised investors to not take fresh long positions and for those who have already included this stock in their portfolios, he advised holding the stock. 

This stock may reach its lifetime high of Rs 1305 in November. That could be a time for profit booking. Jain said that this is the only private sector bank which is closest to its life time high.      

The 52-week low of this stock is Rs 738.45 on 24 March 2020 while the 52-week high is Rs 1305.05 on 19 Dec 2020. 

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India’s largest private sector lender, Q2FY21 profit beating analyst expectations due to strong loan growth and a fall in bad loans. The declining of bad loans augurs well for HDFC Bank, Jain said.