HDFC Bank share price continued trading in the negative territory for the third consecutive session on Wednesday, January 7, falling 1.6% to its intraday low of ₹947.20. In these three sessions, the blue-chip stock has cumulatively fallen more than 5%.
HDFC Bank shares have been on a downtrend after the private sector lender announced its December quarter (Q3 FY26) business updates.
In an exchange filing on January 5, HDFC Bank said its gross advances rose by 11.9% year-on-year (YoY) to approximately ₹28,445 billion as of December 31, 2025, from ₹25,426 billion as of December 31, 2024.
Average deposits grew 12.2% YoY to ₹27,524 billion for Q3FY26 from ₹24,528 billion for the corresponding period. Average CASA deposits rose by 9.9% YoY to ₹8,984 billion for the quarter from ₹8,176 billion for the corresponding quarter.
HDFC Bank share price trend
Over the last year, HDFC Bank shares have gained 11% against an 8.5% rise in the Sensex, but an 18% rise in the banking index BSE Bankex, as per the BSE data.
The stock reached a 52-week high of ₹1,020.35 on October 23 and a 52-week low of ₹812.13 on January 13 of the previous year.
The recent correction in the stock could be because of weak deposit growth and profit booking after recent gains ahead of Q3 results.
“The key concern appears to be deposit growth. Deposit accretion was lower than market expectations, especially when compared to the previous quarter. The stock had outperformed last year, and some profit-booking ahead of Q3 earnings cannot be ruled out,” said Ajit Mishra, SVP of Research at Religare Broking.
Is it the right time to buy HDFC Bank shares ahead of Q3 results?
HDFC Bank will announce its Q3FY26 earnings on 17 January 2026. As per Systematix Research’s estimates, HDFC Bank’s Q3 profit after tax (PAT) may see a healthy 11.2% YoY growth, while operating profit may climb by 7.8% YoY. Net interest income (NII) may see a rise of 6.4% YoY.
Experts appear largely positive about the stock due to its strong financial performance and strategic initiatives.
“The bank aims to grow in line with the industry in FY26 and faster than the industry in FY27, with a focus on deposit growth and improving its loan-to-deposit ratio. HDFC Bank’s strong franchise, superior return on equity, and consistent profitability justify maintaining core positions. Its operational excellence, capital efficiency, and market leadership support its growth trajectory,” said Seema Srivastava, Senior Research Analyst at SMC Global Securities.
Mishra of Religare Broking has a buy call on the stock with a target price of ₹1,220.
“We remain positive and would recommend buying the stock. This correction presents a buy-on-dips opportunity, especially for long-term investors,” said Mishra.
While the long-term outlook remains positive for the stock, some technical experts suggest investors should wait for the stock to move back above the 200-day EMA (exponential moving average) for trends to turn positive.
Aakash Shah, a research analyst at Choice Broking, highlighted that HDFC Bank is currently placed below its 200-day EMA, which is positioned near ₹963, indicating a cautious technical setup.
“The stock witnessed intraday selling pressure and slipped below the 200-day EMA, highlighting weakness at higher levels and reinforcing the importance of this average as a key medium-term resistance. Overall, the stock continues to move in a broad consolidation phase, with price action lacking clear directional strength,” Shah observed.
Shah pointed out that the 20-, 50- and 100-day EMAs are clustered in the ₹985–990 zone and are acting as a strong overhead resistance band, suggesting supply on rallies. Moreover, momentum indicators remain weak, with the RSI hovering in the lower band, indicating subdued buying interest and limited upside momentum at present.
“On the downside, the ₹950 level is emerging as an immediate support zone, while a breakdown below this could expose the stock to further downside towards ₹930–920,” said Shah.
“As long as HDFC Bank trades below the ₹965 resistance zone, the technical view remains cautious. A sustained move back above the 200-day EMA would be required to stabilise the stock and improve the overall technical structure,” said Shah.
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, pointed out that HDFC Bank has decisively broken below its critical rising trendline, indicating a pause in the prevailing uptrend and hinting at near-term weakness.
“The stock is currently trading below its 200-day DEMA, which further reflects a loss of medium-term momentum and cautious sentiment among participants. On the downside, the ₹940 zone emerges as an important historical support, where buying interest has earlier been witnessed,” said Patel.
Given the technical setup, Patel believes the stock may remain range-bound and may undergo consolidation in the ₹940–950 zone over the next few weeks as it digests recent declines.
“In the short term, ₹940 will act as a key support level, while any pullback or recovery is expected to face resistance near ₹970. A decisive move beyond this range would be required to establish the next directional trend,” said Patel.
Read all market-related news here
Read more stories by Nishant Kumar
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
About The Author
