HDFC has been one of the leadership stock in current Bull market. It means any pullback should be seen as Buying Opportunity.
The stock after a long long time has seen six days of relentless pullback. Does this mean - stock presents a buying opportunity and if yes, then where is the support? Let us analyze the situation.
Here's the HDFC stock daily chart
Technically, HDFC stock has strong support near 50 dma. In the past - HDFC has sometimes slipped below 50 dma for a day or two and then bounced back. One can assume similar scenario this time too.
What does this mean?
The aggressive and institutional traders will look to buy the stock near 50 dma i.e. 1020 levels. One can hope for interesting trading action around this level. A False breakdown would make a case for strong trading buy i.e. stock slips below 50 dma and then bounces back.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers