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MTF Stock Pick: HDFC Bank – A Strategic Opportunity Backed by Bajaj Broking Research

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The Bajaj Broking Research Desk has identified HDFC Bank as a notable Margin Trading Facility (MTF) stock pick, targeting a price of ₹1,947 from its current level of ₹1,725. This recommendation stems from HDFC Bank’s strong Q2FY25 performance, which showcased stable margins, robust deposit growth, and strategic branch expansion. This selection reflects the bank’s readiness to seize economic and credit growth opportunities.

Recommendation Details

  • Stock Name: HDFC Bank
  • Current Price: ₹1,764.75
  • Target Price: ₹1,947
  • Duration: 35 Days

HDFC BANK LTD

Trade

1741.2-1.05 (-0.06 %)

Updated - 21 November 2024
1759.00day high
DAY HIGH
1734.20day low
DAY LOW
17858256
VOLUME (BSE)

Why HDFC Bank?

HDFC Bank’s Q2FY25 performance exemplifies resilience and strategic foresight. Key highlights include:

  • Stable Margins & Deposit Growth: HDFC Bank’s efforts to optimize its loan-deposit ratio and replace high-cost borrowings have resulted in strong deposit growth and stable margins, positioning the bank well for economic improvements and credit growth.
  • Future Growth Prospects: The bank’s portfolio improvements and expanded retail loan mix are expected to support a better credit-deposit ratio and maintain steady margins over the medium term. Management is committed to restoring the credit-deposit (C/D) ratio to pre-merger levels of 86-87% within 2-3 years through controlled loan expansion and deposit optimization.
  • Branch Network Expansion: HDFC Bank’s strategic expansion through 240 new branches nationwide during Q2FY25 reflects its intent to capitalize on ongoing credit growth opportunities.

What is Margin Trading Facility (MTF)?

Margin Trading Facility enables investors to leverage their market positions by borrowing funds to trade larger volumes. While this can enhance potential returns, it requires careful management and consideration of associated risks. Bajaj Broking’s MTF services are structured to provide flexibility and expert-backed strategies for informed trading. Explore more about MTF with Bajaj Broking.

Technical Outlook

HDFC Bank’s share price has been in a steady uptrend over the past nine months, forming a bottom at ₹1,363 in February 2024. The breakout above multiple highs over the last three years signals a potential structural turnaround, creating a fresh entry opportunity for investors. Among key technical indicators, the weekly MACD has shown a positive bias, rebounding from its nine-period average and validating upward momentum. The stock is expected to continue its upward movement, with a target of ₹1,947 based on a 161.8% external retracement of its previous breather range (₹1,725-₹1,363).

Conclusion

HDFC Bank offers an opportunity for strategic investment under Bajaj Broking’s MTF recommendation, supported by strong financials and expert analysis. Leveraging MTF can help investors maximize their market exposure and returns, backed by research-driven insights.

Note: The figures are as of 3:30 PM on 11th November 2024. For more details, you can check out the Research report attached below.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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