{"id":7091,"date":"2022-02-21T18:59:15","date_gmt":"2022-02-21T13:29:15","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=7091"},"modified":"2022-08-26T16:35:20","modified_gmt":"2022-08-26T11:05:20","slug":"hdfc-ltd-finally-going-to-rally","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/hdfc-ltd-finally-going-to-rally\/","title":{"rendered":"HDFC Limited &#8211; Finally Going To Rally?"},"content":{"rendered":"\n<p><em>This article is authored by Kunal Rambhia, a fund manager at The Streets, a private fund. He has been in the <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">equity<\/a> market since 2010, performing various roles such as Associate Research Analyst, Research Analyst, and Associate <a href=\"https:\/\/www.tickertape.in\/blog\/portfolio-manager\/\">Portfolio Manager<\/a>. He has media appearances with CNBC and ET NOW. Kunal is also a visiting faculty in multiple colleges.<\/em><\/p>\n\n\n\n<p>Hello all, herein I share my view on <a href=\"https:\/\/www.tickertape.in\/stocks\/housing-development-finance-corporation-HDFC?&amp;utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">HDFC Ltd<\/a>. It\u2019s been in limelight due to its longer underperformance (Since January 2020). But, blessings in disguise, sometimes longer underperformance ends up offering better risk-reward opportunities for positional players \ud83d\ude42<\/p>\n\n\n\n<p>The beauty of <a href=\"https:\/\/www.tickertape.in\/blog\/technical-analysis-of-stocks\/\">technical analysis<\/a> is the evaluation of multiple timeframes to understand trends, formations and favourable entry zones. Let\u2019s take a deep dive into monthly, weekly and daily charts and understand better.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/MESB3PKdJ7e8JBCSKCeHO3Y35eQli2esnTKIr0wrMH2_E32t0ZfxXjyVBpyRT74dQAEHlMsNjXAghXpokzA6j8x2YQYGAaGlOkdfBnbsd008GtU8KWK_9zbQCrLztDSgDjo5SdW9\" alt=\"\"\/><\/figure>\n\n\n\n<p>This is the monthly log chart of HDFC Ltd. Price has taken support of this bottom trend line multiple times in the last 15 yrs. Also, the horizontal support trend line (highlighted with white dotted line) shows that HDFC has taken horizontal support multiple times near high, highlighting its \u2018time correction\u2019 rather than price correction. Recently, the price has remained within sideways consolidation since January 2021. There is a bright possibility of support in place. Also, the present zone can be a very decent level for investors to keep an eye on accumulating the counter as 2 support trendiness is in conjunction with each other.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/hdfc-ltd-finally-going-to-rally\/#Weekly-chart-%E2%80%93-Consolidation-zone\" title=\"Weekly chart &#8211; Consolidation zone\">Weekly chart &#8211; Consolidation zone<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/hdfc-ltd-finally-going-to-rally\/#Weekly-Chart-%E2%80%93-Fibonacci-Ratio-tool\" title=\"Weekly Chart &#8211; Fibonacci Ratio tool\">Weekly Chart &#8211; Fibonacci Ratio tool<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/hdfc-ltd-finally-going-to-rally\/#Weekly-Chart-%E2%80%93-Ichimoku-indicator\" title=\"Weekly Chart &#8211; Ichimoku indicator\">Weekly Chart &#8211; Ichimoku indicator<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/hdfc-ltd-finally-going-to-rally\/#Weekly-Log-Chart-%E2%80%93-200-EMA\" title=\"Weekly Log Chart &#8211; 200 EMA\">Weekly Log Chart &#8211; 200 EMA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/hdfc-ltd-finally-going-to-rally\/#HDFC-vs-Nifty-Weekly-Ratio-Chart\" title=\"HDFC vs Nifty Weekly Ratio Chart\">HDFC vs Nifty Weekly Ratio Chart<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/hdfc-ltd-finally-going-to-rally\/#HDFC-vs-HDFC-Bank-weekly-ratio-chart\" title=\"HDFC vs HDFC Bank weekly ratio chart\">HDFC vs HDFC Bank weekly ratio chart<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/hdfc-ltd-finally-going-to-rally\/#Daily-chart-with-possible-Wolfe-wave\" title=\"Daily chart with possible Wolfe wave\">Daily chart with possible Wolfe wave<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/hdfc-ltd-finally-going-to-rally\/#Putting-it-all-together\" title=\"Putting it all together\">Putting it all together<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-chart-%E2%80%93-Consolidation-zone\"><\/span><strong>Weekly chart &#8211; Consolidation zone<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/BxfFJCLPgMorCtHp8VQOjbW9piZRxAv6e5TW1idItMuaF0y2f_xnfa_zJrE-g0hnTRg3AJb-q3bW2T_ndqgHoFl6VFU2CQRRyIsfTD9X4F3JUkCdV-3BhRgtvGMa7UgLG1wvMLLe\" alt=\"\"\/><\/figure>\n\n\n\n<p>The stock seems to be in a perfect consolidation zone since February 2020. After the extreme decline of COVID phase and sharp recovery post-pandemic, the stock is back at the same zone. This seems to be the perfect \u2018Mean\u2019 of the counter. It\u2019s near the lower end of the consolidation and offers the best risk-reward for positional players.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-Chart-%E2%80%93-Fibonacci-Ratio-tool\"><\/span><strong>Weekly Chart &#8211; Fibonacci Ratio tool<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/Yps3Aff7Xh58Ywg8Huaq1xk3U6LLFWCeclOlPYKJNTiLHApaCUpsp7efGsgARF_YPNn75dyPrLJ1YxK-eyIEE0zcSefCAZxLDI9meu-NLXR61MPprJiIGNu5W1YBxpCWkL3t4E2Y\" alt=\"\"\/><\/figure>\n\n\n\n<p>Compared to the recent incline from 2020 to 2021, the recent two corrections seem to be holding up 38.2% zone. The last week\u2019s correction was a little dip and remained within the zone of 38.2% to 50%. Recovery by the end of the week was sharp, creating \u2018Hammer\u2019 formation and closing was above 38.2%, confirming a good support zone.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-Chart-%E2%80%93-Ichimoku-indicator\"><\/span><strong>Weekly Chart &#8211; Ichimoku indicator<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/D6yy1ExGtZFaFUzBDNsYmzuAhHXQtqWjTnyDMQiBSbHT14twuUfB5Zzma6jHtBsVysqu540hVoMQStVMO-LHlwEkiX9Orl6Yw7BXepQiHpKc1WTdM6r6ir490BdyrbXNI-y2KSCC\" alt=\"\"\/><\/figure>\n\n\n\n<p>Since 2014, the counter has taken support of Senkou Span B of Kumo Cloud. Few minor whipsaws were noticed, but more or fewer odds for support are clearly more. Reliability is even higher due to candlestick formation.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Weekly-Log-Chart-%E2%80%93-200-EMA\"><\/span><strong>Weekly Log Chart &#8211; 200 EMA<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/n9l598nkVJCkCKlFot90bQs9Rp7CZUQTmb85LrhiFVeUuWllg_jHnd70PxtnzfOM2NQkVKt_FXBanh1wYYmOYb-ySHoyThRcFCpKhaX5UB-bhc_aNpO_6WZecmu4YBVxNGXmDx1i\" alt=\"\"\/><\/figure>\n\n\n\n<p>HDFC seems to be respecting 200 <a href=\"https:\/\/www.tickertape.in\/blog\/exponential-moving-average\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\">EMA<\/a> on the weekly chart in a much bigger way. There were only 2 exceptional events (2008 and 2020) in the last 19 yrs. The exact level of 200 EMA on the weekly chart comes to 2205. Instead of the exact level, one should consider the support zone and try to find an entry in the counter.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"HDFC-vs-Nifty-Weekly-Ratio-Chart\"><\/span><strong>HDFC vs Nifty Weekly Ratio Chart<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/Txla25Arobq4-300kfPTs42mDptA51SOwbOLaVdiX91cDGina-f5UIEUI9Y4fWYWIQhBWUSSsqNN1_U_zZRCSOdlsMePl5Ggv_TnmKD0DuCol93kVQ88KaQH8zXPgHvHnIgWqMTi\" alt=\"\"\/><\/figure>\n\n\n\n<p>The ratio chart of HDFC and <a href=\"https:\/\/www.tickertape.in\/indices\/nifty-index-.NSEI?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\" target=\"_blank\" rel=\"noreferrer noopener\">Nifty<\/a> is plotted here. The chart seems to be forming a \u2018falling wedge\u2019 with perfect 5 points so far and the last candle is \u2018hammer\u2019 right onto the support trend line. The formation is bullish in tone and the candle supports the possibility of HDFC outperformance vs Nifty in the time to come.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"HDFC-vs-HDFC-Bank-weekly-ratio-chart\"><\/span><strong>HDFC vs HDFC Bank weekly ratio chart<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/_RZagBxJCgrf6AxNE1BGDnViPtVDNAyR34XZgXT3gqwfSPH6WijuWXUC-W0TZo7MswAAjb8_wQdPrKLiMTd-wV0SZp0C7nh6Kr4unJrZtQGk8k9KtsJ2ZwwX6QSw7tJW743C50AS\" alt=\"\"\/><\/figure>\n\n\n\n<p>The ratio chart of HDFC vs HDFC Bank is highlighting a broader consolidation since mid of 2017. The ratio chart is showing action right near the low of consolidation with again \u2018hammer\u2019 formation. This highlights possible HDFC outperformance vs HDFC Bank in the time to come.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Daily-chart-with-possible-Wolfe-wave\"><\/span><strong>Daily chart with possible Wolfe wave<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/JBWlW_mLBBhPex4b1GhEvXWTdLO9g7QGMcD1X2iZ8Dlrls_OEnrzrcx6FPtuOcH3Io9Mbbj9s0U3hPoBYAMVNeo-NSMIgJgbX4wymQfjPAORj6K7YJApC3VlzrKmoLP8C5IRawwl\" alt=\"\"\/><\/figure>\n\n\n\n<p>The daily chart of HDFC bank was showing \u2018falling wedge\u2019 formation with lower breakdown and reversal. The reversal had sizable volumes compared to the past. This confirms the Wolfe wave structure on all parameters. As per the formations, one can expect a target of 2900 by July 2022.<\/p>\n\n\n\n<p>Kindly note that due to the lower time frame, it is important to remain flexible with a shorter time horizon in mind.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Putting-it-all-together\"><\/span><strong>Putting it all together<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Looking at monthly time frame trend lines, weekly formations, indicators like <a href=\"https:\/\/www.tickertape.in\/blog\/exponential-moving-average\/\">exponential moving average<\/a> and <a href=\"https:\/\/www.tickertape.in\/blog\/ichimoku-cloud\/?utm_source=blog&amp;utm_medium=gart&amp;utm_campaign=kunram\">Ichimoku<\/a>, with Fibonacci supports, Ratio chart of HDFC with Nifty and HDFC Bank, I think this can be a good positional long bet. I look at the counter as a trending\/growth counter and so give importance to a favourable risk-reward ratio.&nbsp;<\/p>\n\n\n\n<p><em>Statutory Disclosure: Kindly note that this update is only for educational purposes. It is safe to assume that my personal position, my fund\u2019s position, my client\u2019s position and my relative\u2019s position may be open at the counter. Prefer to take the advice of your financial advisor before initiating any position.&nbsp;<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kunal Rambhia, Fund Manager at the Streets, shares his positional views on HDFC Ltd on various higher timeframes.<\/p>\n","protected":false},"author":73,"featured_media":7093,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[9,1742],"tags":[],"acf":[],"modified_by":"Aradhana Gotur","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/02\/TT-21-Feb-HDFC-Kunal-R-2.jpg?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/7091"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/73"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=7091"}],"version-history":[{"count":9,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/7091\/revisions"}],"predecessor-version":[{"id":7124,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/7091\/revisions\/7124"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/7093"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=7091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=7091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=7091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}