Shares of India’s largest private lender fell to a new 52-week low of Rs 681.90 apiece on Friday. This marks a decline of over 33% in less than 11 months after hitting an all-time high of Rs 1,020.50 apiece in October last year.
The sharp sell-off in HDFC Bank shares began in March this year after its former part-time chairman Atanu Chakraborty resigned, saying that certain practices within the bank were not in line with his personal values and ethics. The management cloud led to a massive sell-off, which recovered slightly after the bank changed management.
HDFC Bank’s board has submitted two candidates to the Reserve Bank of India (RBI) for the CEO role, formally beginning the succession process for Sashidhar Jagdishan, who is due to retire at the end of this year, the country’s largest private lender said on Saturday.
Also read | HDFC Bank has submitted two candidates to RBI for the post of its next CEO.
Bullish brokerages call for HDFC Bank share price hike
Goldman Sachs last month initiated coverage on HDFC Bank with a ‘Buy’ call and a target price of Rs 861 per share. Goldman Sachs noted that the main changes in the bank’s PPOP are driven by profitability and operating leverage, as well as attractive valuations.
The Wall Street giant entered coverage with a Buy rating due to strong valuations, despite expectations of further downward earnings revisions. Nomura and Motilal Oswal Financial Services also received buy calls on HDFC Bank shares.
HDFC Bank stock technical setup ‘extremely boring’
HDFC Bank stock was the weakest among all Nifty Bank members, down 29% in 2026. Not only has performance this calendar year been disappointing, but the stock has also delivered weak returns over the past three to five years, down nearly 14% and 9%, respectively. “Despite significant underperformance by this banking heavyweight, there are still no significant signs of improvement and the technical framework remains extremely dull and weak,” said Hitesh Rathi, technical analyst (equities and derivatives) at Angel One.
He noted that over the long term, the stock fell below its 20- and 50-day EMA and remained below both averages for six consecutive months, the first such event since its listing and underscoring the deterioration of its long-term technical structure. A similar bearish setup appears on the point-and-point charts, where the stock triggered subsequent double-bottom selling for the first time since 2011. The current situation is particularly worrying given the subsequent sell-offs that have been observed subsequently, which was noticeably absent in previous instances of a similar pattern, the analyst said while explaining the technical charts for HDFC Bank.
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Is HDFC Bank stock ready for a trend reversal?
According to Rathi, the stock is currently oversold on several technical parameters, while the wide disparity in its performance also leaves room for a near-term bounce. “Hence, a short-term recovery cannot be ruled out. However, the broader technical situation and trend remain firmly bearish with no significant signs of a trend reversal at this stage,” he added.
Dnyanada Vaidya, Research Analyst, BFSI at Axis Direct, also said valuations after the sharp correction are attractive and downside risk appears limited. Clarity regarding the appointment of Managing Director and Chief Executive Officer will remain a key area of monitoring. “From an operational perspective, we believe the bank is likely to witness improvement in profitability, although this will be a multi-quarter path supported by multiple levers. Similarly, growth is also showing signs of improvement. We expect HDFC Bank to consistently deliver a return on assets of 1.8-1.9 per cent over the medium term,” the analyst said while rating the stock as a “buy”.
Also read | HDFC CEO race: One insider, one outsider in the race for the top job
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