HDFC Bank Shares Extend Rally for Second Consecutive Session, Recovering From Recent Lows

HDFC Bank shares extended their gains for a second consecutive session on Wednesday, recovering further from their recent 52-week low.

The stock rose 0.82 per cent to trade at ₹731.45 on the National Stock Exchange (NSE) by 11.49 am, moving up ₹5.95 from Tuesday’s close of ₹725.50. During the trading session, the stock touched an intraday high of ₹741.30 before paring some of its gains. It recorded a session low of ₹719.25 and opened at ₹722.80.

This two-day rally has lifted the stock nearly 3.72 per cent from Monday’s close of ₹700.00, helping it recover further ground from the 52-week low of ₹669.20 recorded on October 28. Following this movement, the bank's total market capitalisation climbed to ₹11,28,803.74 crore.

Trading activity also saw a notable increase. Traded volume surged to 298.80 lakh shares valued at ₹2,196.20 crore, which is nearly double the mid-session turnover of ₹1,051.91 crore recorded on Tuesday. The deliverable quantity for the session stood at 67.83 per cent.

Despite the upward price movement, order book data indicated that selling pressure remained dominant at 81.17 per cent of the total order quantity, while buyers accounted for 18.83 per cent. This disparity points to continued supply-side resistance at higher price levels. Following the market activity, the price-to-earnings (P/E) ratio firmed to 13.98, with the adjusted figure at 13.78.

In broader market movements, Bank Nifty opened below its previous close near 55,485. However, it attracted buying interest early in the session and maintained a positive bias. Market analysts note immediate resistance for Bank Nifty in the 55,800 to 56,000 range, with support identified between 55,200 and 55,000.

On a year-to-date basis, the stock remains down 26.21 per cent compared to a 9.01 per cent decline for the Nifty 50 index, though it registers a one-week return of 6.72 per cent.

"The recent recovery in HDFC Bank shares reflects a temporary relief rally after hitting a 52-week low. However, the heavy selling pressure observed in the order book indicates that investors are still cautious at higher levels. While short-term momentum looks positive, sustained long-term recovery will depend on broader macroeconomic indicators and consistent buying support to overcome resistance zones in the banking sector." — Dr. Shishir Gupta, Founder & CEO, StartupLanes