HDFC Bank shares hit 52-week lows over consecutive sessions while analysts scream Buy. Has the stock hit its bottom?

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The stock of India's largest private lender dropped to a fresh 52-week low of Rs 681.90 apiece on Friday. This marks more than a 33% fall in less than 11 months after hitting a record high of Rs 1,020.50 apiece in October last year.
The sharp selloff in HDFC Bank shares began in March this year after its former part-time Chairman Atanu Chakraborty resigned, stating that some practices within the bank did not match his personal values and ethics. The governance cloud led to a massive selloff that recovered slightly after the bank made leadership changes.
HDFC Bank's board has submitted two candidates to the Reserve Bank of India (RBI) for the role of CEO, formally beginning the succession process for Sashidhar Jagdishan, who is due to retire later this year, the country's largest private lender said on Saturday.
Also read | HDFC Bank submits two candidates to RBI for next CEO
Bullish brokerage calls for HDFC Bank share price
Goldman Sachs last month initiated coverage on HDFC Bank with a ‘Buy’ call and a target price of Rs 861 apiece. Goldman Sachs noted the bank’s core-PPOP inflection driven by margins and operating leverage, along with attractive valuations.
The Wall Street giant initiated coverage with a 'Buy' rating due to compelling valuations, despite expecting further downside earnings revisions. Nomura and Motilal Oswal Financial Services also have ‘Buy’ calls on HDFC Bank shares.
HDFC Bank shares technical setup is 'highly uninspiring'
HDFC Bank shares have been the weakest among all Nifty Bank constituents, declining 29% so far in 2026. Not only has the performance been disappointing this calendar year, but the stock has also delivered weak returns over the past three to five years, declining nearly 14% and 9%, respectively. “Despite the significant underperformance of this banking heavyweight, there are still no meaningful signs of a turnaround, with the technical setup remaining highly uninspiring and weak,” said Hitesh Rathi, Technical Analyst (Equity & Derivatives) at Angel One.
He noted that in the long term, the stock has slipped below its 20 and 50 EMAs and has remained below both averages for six consecutive months, marking the first such occurrence since its listing and underscoring the deterioration in its long-term technical structure. A similar bearish setup is emerging on the point & figure charts, where the stock has triggered a follow-through double bottom sell for the first time since 2011. The current setup is particularly concerning given the follow-through selling witnessed subsequently, which was notably absent during previous instances of a similar pattern, the analyst said while explaining the technical charts for HDFC Bank.
Also read | Four rules made HDFC Bank a compounder. All four have stopped. Can the new CEO rewrite them?
Are HDFC Bank shares set for a trend reversal?
The stock is now displaying oversold readings across several technical parameters, while the significant disparity in its performance also leaves room for a short-term bounce, according to Rathi. “Hence, a near-term recovery cannot be ruled out. However, the broader technical setup and trend remain firmly bearish, with no meaningful signs of a trend reversal visible at this stage,” he added.
Dnyanada Vaidya, Research Analyst on BFSI at Axis Direct, also noted that the valuations post the sharp correction are attractive and the downside risk appears limited. Clarity around MD & CEO appointment will remain a key monitorable. “From an operational standpoint, we believe the bank is likely to witness margin improvement, though it would be a multi-quarter journey, supported by multiple levers. Similarly, growth is also showing signs of improvement. We expect HDFC Bank to consistently deliver RoA of 1.8-1.9% over the medium term,” the analyst said while recommending a ‘Buy’ call on the stock.
Also read | HDFC CEO race: One insider, one outsider in contention for the top job
Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
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document fetched 2026-09-15 02:52