HDFC Bank Shares Post Largest Decline in Two Years: Analyst Offers Insight on Buying Opportunity

HDFC Bank Share Price Declines Sharply Following Chairman's Resignation

On Thursday, HDFC Bank's share price hit a fresh 52-week low, plummeting as much as 8.7% to Rs 770 per share on the NSE. The stock opened gap-down with similar losses and extended the decline for a second consecutive session. Although it recovered some ground, the shares settled at Rs 800, down 5.11%.

The stock's decline marked its steepest fall in over two years and ranked it among the top losers on the benchmark Nifty50 index. HDFC Bank has been in a "decisive Stage 4 decline" since January 5, 2026, correcting more than 20%.

According to market analyst Om Ghawalkar, immediate support for the stock is seen in the Rs 700–715 range, while resistance is placed between Rs 850 and Rs 860. The broader banking index also witnessed selling pressure, with the Bank Nifty index ending 3.39% lower at 53,451.

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Ghawalkar identified a "gravestone doji" on the daily chart, indicating a bearish reversal. He noted that the index has immediate support at 52,600, while resistance is seen at 56,300.

In response to the developments, Macquarie removed HDFC Bank from its marquee buy list. However, HDFC Bank maintained that the part-time chairman's exit was due to a rift with the management team, with no material issues at the bank.

The Reserve Bank of India (RBI) stated that HDFC Bank remains a domestic systemically important bank with sound financials and a professional management. The RBI also approved the appointment of former HDFC Group executive Keki Mistry as interim non-executive chairman for three months.