HDFC Bank stock price today trades within a defined range, and according to Akshay Bhagwat, Senior Vice-President of Derivatives Research at JM Financial Services, the banking major faces limited upside potential right now. Analysts expect the HDFC Bank stock price today to move between Rs 900 and Rs 970 in the near term, with market experts advising investors to hold the stock with a stop loss placed at Rs 895. Traders are watching the HDFC Bank stock price today closely for breakout signals.
HDFC Bank Share Price Outlook And Nifty 50 Range
Analysts are discussing the HDFC Bank share price outlook at a time when the broader market also shows signs of momentum building up. Bhagwat expects 25,500 to act as a strong base for the benchmark Nifty50, and he mentioned that 26,000 emerges as the immediate hurdle for the index at the time of writing. The HDFC Bank stock price today has been consolidating in this range for several sessions now.
Speaking to Business Today on Wednesday, the market expert stated, “The index is catching up momentum and 26,000 is the first immediate barrier. Overall, the market view remains positive and Nifty may revisit its lifetime highs.” This broader market sentiment has implications for how the HDFC Bank stock price today performs in the near term.
JM Financial HDFC Bank Target Range
The JM Financial HDFC Bank target suggests a trading corridor that investors are watching right now, and analysts indicate the HDFC Bank stock price today may continue moving within the Rs 900-970 range, which reflects a cautious stance on the private sector lender’s near-term prospects. Market participants monitor this HDFC Bank price range forecast as the bank navigates through the current banking sector dynamics and challenges. JM Financial has set the JM Financial HDFC Bank target with these broader market conditions in mind.
Banking Sector Challenges
Broader sector trends that have emerged in recent quarters shape the HDFC Bank stock analysis, and according to JM Financial’s latest sectoral note, Public Sector Banks outpace their private peers in loan growth. The brokerage firm describes this as a real surprise, and the HDFC Bank stock analysis takes into account these competitive dynamics.
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Loan growth in JM Financial‘s coverage universe increased to around 13% year-on-year from 11% in the second quarter, with PSBs outperforming private banks even further. However, deposit growth remained relatively subdued at approximately 10% year-on-year, with PSBs continuing to lag private peers.
The brokerage noted, “Deposit growth, however, remained relatively subdued at ~10% YoY with PSBs continuing to lag private peers, resulting in a 270 bps QoQ spike in PSBs’ CD ratio (versus ~60 bps for private banks).”
Private Banks Face Margin Pressures
Operational challenges facing private lenders right now also influence the HDFC Bank price range forecast. PSBs turned in stronger Pre-Provision Operating Profit growth on the back of higher treasury gains, recoveries and also limited labour code impact.
Private banks’ PPOP growth, on the other hand, moderated due to reduced other income and relatively higher operational expense pressure, as per JM Financial’s assessment. The firm stated, “PSBs also turned in stronger PPOP growth on the back of higher treasury gains, recoveries and limited labour code impact, whereas private banks’ PPOP growth moderated due to reduced other income and relatively higher opex pressure.“
JM Financial’s Banking Sector Ratings
In its latest sectoral recommendations, JM Financial has assigned an ‘Add’ rating to HDFC Bank stock, along with Federal Bank and also Bandhan Bank. The brokerage’s preferred picks in the banking sector include ICICI Bank, Axis Bank, State Bank of India, Ujjivan SFB, City Union Bank, and DCB Bank, all of which carry a ‘Buy’ rating at the time of writing.