HDFC Bank forms bullish engulfing candle

The stock HDFC Bank Limited after touching 200-day EMA bounces sharply and formed bullish engulfing candle on daily time frame which indicates bulls were in a dominant position. The stock has also given a breakout of downward sloping trendline on daily time frame. The breakout was supported by justifiable volumes.

The daily 14-day RSI is quoting at 45.80 and it has recently given positive crossover, which depicts positive momentum. The stochastic has also given positive crossover in oversold zone. Meanwhile, stock has also managed to give close above its 100-day EMA.

For any immediate decline, 100-day EMA is likely to act as support which is currently placed at Rs 2,067.30. While on the upside, the stock is likely to face resistance at Rs. 2,100, followed by Rs. 2,150.

On Thursday, the stock of HDFC Bank closed at Rs. 2,081.15 per share, surged by 2.39 per cent. The stock opened at Rs. 2,039 per share and hit an intraday high of Rs. 2,090 and a low of Rs. 2,023 per share on BSE.