HDFC is one of the strongest company in the stocks of Indian Indices. Reducing the rate cut by RBI will enable more inflows to the company in turn more business and reduced interest burden will lead to the good profits in books.
HDFC made a high of 882.30 and from which stock corrected approximately to (750)50% of Fibonacci levels where it found support and bounced back. If at all Nifty has to go up, HDFC is one stock which will move up form current levels. Stock made a classical inverted Head and Shoulder pattern.If stock breaks above this levels of 829, stock may see an immediate up move till 883 to 906.
HDFC found support at 50% of Fibonacci levels and now formed Inverted Head and shoulder pattern.
If stock breaks this pattern and moves above 888 levels which completes a Cup and Handle formation. Stock is strong and can move to good upside levels considering the RBI rate cuts.Being a strong company stock may see much more upside. Good to have this stock in portfolio. Investors who invest regularly also can invest in SIP (Systematic Investment Method).