HDFC AMC Stock: Chart Check: Down 40% from highs! This AMC company may be a good buy on bottoming stocks. here’s why

HDFC Asset Management Company Ltd, part of the AMC space, has fallen over 40% from the September 2021 highs, but recent price action suggests that the bulls are trying to take over, causing some makes a good buy on falling stocks.

The stock hit a 52-week high at 3,363 rupees on September 9, 2021, but failed to maintain momentum. It closed at Rs 1,914 on July 12, 2022, which translates to a decline of more than 40%.

The stock took support near Rs 1700 several times in May and then June 2022 and rebounded. It rose more than 3% in a week to trade above its 50-DMA placed at Rs 1,835 on the daily charts.

However, on the weekly charts, the stock is still trading below the 50 and 200-WMA but the bulls have helped it break above the high of Rs 1,945 formed the week of May 30, 2022. Short-term traders can consider buying the stock now or down for a possible target towards Rs 2,325-2,725 over the next six months, experts suggest.

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On the price front, the action is trading above 5, 10, 20, 30 and 50-DMA but below 100, 150 and 200-DMA. The relative strength index (RSI) is placed at 64.7. An RSI below 30 is considered oversold and above 70 is considered overbought, according to data from Trendlyne. MACD is above its center and the signal line, a bullish indicator.

The share price started its downward trend from Rs 3,363 (Sept 21), with lower highs and lower lows, continuously trading below the averages. The stock bottomed at Rs 1,691 in May 2022. and a new recent high of Rs 1,963 is hit by the stock,” Bharat Gala, President – ​​Technical Research,

Titles, said.

“William’s, KST, Demand Index and RSI indicators have generated an indication of a possibility of a corrective upside move. Supply appears to be exhausted and the stock may give an upside corrective move,” he said. he declares.

Gala recommends possible targets to be Rs 2,325-2,525-2,725. And, if the stock price corrects lower, buy levels are Rs 1,905-1,865-1,830-1,810 -1790. A Stop Loss to observe in the trade is 1735, he said.

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Karen J. Nelson