HDFC twins see profit booking, emerge top Nifty losers today

NEW DELHI: A day after heavy buying was seen in HDFC twins, some traders resorted to booking profits on Tuesday. HDFC and HDFC Bank shares were the biggest Nifty losers of the day.

HDFC Bank traded down 2.71 per cent at Rs 1,611.90 while mortgage lender HDFC declined 1.72 per cent to Rs 2,634. On Monday, shares of HDFC Bank rallied 10 per cent while HDFC rose over 9 per cent.

The trigger for the movement in stock is a merger announcement between both companies that will likely make HDFC Bank the second largest company in the country, behind Reliance Industries.


That said, the selling on Tuesday comes after many analysts said the upside in the HDFC Bank stock will be limited. "We don't see the stock going much beyond 1,700," said Rajesh Palviya, head-technicals and derivatives at Axis Securities. "The stock is likely to see stiff resistance around that level based on the call concentration, the maximum call writers are at 1,700 strike."

Meanwhile, fundamental analysts are gung-ho about the merger.

Saurabh Mukherjea of Marcellus Investment Managers said he will happily load up on HDFC Bank as he believes the combined entity will be a money-making machine.