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HDFC Showing No Sign Of Weakness!! Where Is It Headed For??

HDFC showing no sign of weakness!! Where is it headed for??

PERFORMANCE HIGHLIGHTS

 27% growth in Profit After Tax for the quarter ended March 31, 2019 — ` 2,862· crore (PY: ` 2,257 crore)  24% growth in individual loans (after adding back loans sold in the preceding· 12 months)  17% growth in the individual loan book on an Assets Under Management· (AUM) basis as at March 31, 2019  Spreads at 2.30%, Net Interest Margin at 3.3%·  Final dividend of ` 17.50 per share of ` 2 per equity share recommended, total· dividend including interim dividend: ` 21 per share (PY: ` 20 per share)  Consolidated Profit After Tax stood at ` 16,232 crore (PY: ` 11,980 crore) -· Growth of 35%

 

Technical View

The trend of HDFC Ltd is very strong. The stock on its last pullback from 2057 to 1642 retraced a mere 38.2% of the swing from 1009. A stock that doesn’t correct more than 38.2% of the current swing is in a tremendous bull run and is the stock worth buying on every dips for long term investments. The trend of the current swing is intact as shown by the trend line as well. On the lows of 1642 we also have a confluence zone where the fall halted and the stock reversed from. The strength in the stock is pretty visible as it has not only regained the fall but has also moved some 8 odd percent from the breakout zone. The test of a valid breakout is the retest of the zone. But since the stock is in a strong pull trend it may not come down to that extent and make a higher base and move on. The Fibonacci extension has given two confluence zones one at 2185-2190 and the other at 2348-2360. The stock initially resisted the first time it hit the confluence zone at 2185. That shows that the zone was an important one. The break of the zone this week means strength. A weekly close above the zone will mean the bulls have surpassed an important hurdle. The stock is likely to hit the next Fibonacci confluence zone of 2348-2360 which is some 5 percent from current levels and a longer term target of 2528-2566 which is some 15% from current levels.

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