What Technical Analysis of HDFC Bank Hints After Q2FY24 Results?

On Monday, HDFC Bank released its September quarter financial results for the fiscal year 2022-23. On October 16, HDFC Bank shares ended trading on the NSE at Rs 1,532 per share, down 0.24% from the previous close of Rs 1,535.75.

HDFC Bank Q2 Results

According to HDFC Bank, its standalone net profit climbed by 50.6% from Q2FY23 to Rs 15,976 crore in Q2FY24. Net interest income (NII) jumped from Rs 21,021 crore for Q2FY23 to Rs 27,385 crore for Q2FY24, a 30.3% growth. Consolidated profit after tax for the quarter ended September 30, 2023 was Rs 16,811 crore, up 51.1% from the quarter ended September 30, 2022.

The consolidated profit after taxes for the six-month period that ended on September 30, 2023 jumped 40.9% to Rs 29,182 crore. For the quarter ended September 30, 2023, the bank's net revenue jumped by 33.1% YoY, from Rs 28,617 crore for Q2FY23 to Rs 38,093 crore on a standalone basis. In terms of consolidated basis, its net revenue increased from Rs 30,871 crore in Q2FY23 to Rs 66,317 crore in Q2FY24.

For the quarter that ended on September 30, 2023, the bank's operational expenses were Rs 15,399 crore, up 37.2% from Rs 11,225 crore for the same time the year before. The total balance sheet size in the quarter under review was Rs 34,16,310 crore, up from Rs 22,27,893 crore in the year-ago quarter. The bank's gross advances in Q2FY24 were Rs 23,54,633 crore, up 57.7% from Q2FY23, and a spike of around 1.1 lac crore during the quarter after the merger with HDFC Ltd.

HDFC Bank Share Price Target

Sumeet Bagadia, Executive Director at Choice Broking has recommended to buy the shares of HDFC Bank at Rs 1,547 and up to Rs 1,510 for the target of Rs 1,700/Rs 1,780.

The analyst believes that on the daily chart, the stock has bounced from the support of 1490 levels and is currently trading at 1547 forming a three-rising soldiers pattern. Moreover, the stock has also crossed the initial resistance of 1545 which is also close to its 20 Day EMA levels.

"On a weekly chart, the stock has formed a strong green candle after the successful closing of the doji candle a week prior which is a sign of reversal. In addition, a momentum indicator RSI has bounced from the lower level of 30 and is currently trading near 46 levels indicating strength. So based on the above technical structure, we are recommending a buy position in the stock for the medium to long term," said Sumeet Bagadia.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.