HDFC Bank shares have been under pressure, hitting fresh 52-week lows despite analysts maintaining Buy ratings. The stock has fallen around 29% in 2026, with the bank initiating a CEO succession process that has sparked investor interest.
HDFC Bank's stock recently broke below its crucial support zone of Rs 725–720, leading to further declines. The stock is currently trading around this zone, with a recent pullback attributed to the bank submitting two CEO candidates to the RBI. This development led to a gap-up opening, but the stock failed to maintain higher levels, forming a small-bodied bearish candle with a minor upper wick.
Technical analysts suggest that the overall trend remains weak, with a meaningful pullback or short-term reversal likely only if the stock decisively breaks above the Rs 760–765 zone, which coincides with the 20-week EMA, marking an important resistance zone.
“HDFC Bank had broken below its important support zone of Rs 725–720 on the weekly chart and subsequently drifted lower.”
Sudeep Shah, Vice President and Head of Technical & Derivatives Research at SBI Securities
Ajit Mishra of Religare Broking notes that the recent bounce offers some respite after a prolonged decline, aided by the formal CEO succession process. However, sustained buying and a decisive breakout above the Rs 730–760 resistance zone are crucial for a move towards Rs 800.
Jefferies has identified potential external candidates for the CEO position, including Anup Bagchi, Paresh Sukthankar, Vibha Padalkar, Aseem Dhru, Rajiv Sabharwal, and Amitabh Chaudhry. Investors are reportedly comfortable with a leadership change but prefer avoiding former leaders from PSU banks.
“The overall trend remains weak, and any meaningful pullback or short-term reversal is likely only if the stock decisively takes out the 760–765 zone on the upside.”
Sudeep Shah, Vice President and Head of Technical & Derivatives Research at SBI Securities
HDFC Bank has been the worst-performing constituent of the Nifty Bank index this year, with shares declining over the past three and five years by nearly 14% and 9%, respectively. The stock's performance reflects broader challenges in the banking sector, including market volatility and economic uncertainties.
Background
HDFC Bank has been the worst-performing constituent of the Nifty Bank index this year, with shares declining over the past three and five years by nearly 14% and 9%, respectively. The stock's performance reflects broader challenges in the banking sector, including market volatility and economic uncertainties.
Looking ahead, the key factors to watch include deposit growth, margins, asset quality, and management continuity. These elements will determine whether the recent rebound can develop into a meaningful trend reversal.
