The Nifty 50 index is up for the seven straight day on Friday, November 6. The index has now gained more than 2,000 points from the October 28 low of 22,497.
India’s benchmark index has now gained over 7% so far this week, which is turning out to be the best weekly gain that it has seen in over five years. The last instance of the Nifty 50 gaining over 7% in a week was back in the week that ended on January 31, 2021, during which the index had gained 9.5%.
All stocks on the Nifty 50 index have gained during the week, with the market capitalization of all BSE-listed companies going up by over ₹30 lakh crore during the recovery period starting the lows of October 28.
One of the 50 names on the Nifty is HDFC Bank, which is also seeing a similar trend playout for its own stock.
Shares of HDFC Bank are also trading with gains for the sixth straight session, during which the stock has seen a 6% rebound, thereby turning into a primary contributor to the Nifty 50 recovery.
HDFC Bank shares have seen a ₹100 rebound from the October 28 low of ₹669, during which India’s largest private lender had dropped to a multi-year low.
The last instance of HDFC Bank’s shares gaining 6% or more in a week was also back in the week that ended on January 31, 2021, same as the Nifty 50 index.
On the charts, The stock now trades above its 20, 50, and 100-Day Moving Average (DMA), and the next level on the charts is the 200-DMA on the upside, which is at ₹785 levels.
Over the last six sessions, the recovery seen in HDFC Bank has also taken its Relative Strength Index (RSI) to levels of 70. An RSI reading above 70 indicates the stock is “overbought.” Six sessions prior, the RSI for HDFC Bank stood at 38.
None of the 49 analysts who have coverage on HDFC Bank have a “sell” rating on the stock. 47 out of the 49 have a “buy” rating and two others are neutral.
HDFC Bank and the Nifty are set to pull off a feat last seen five years ago; Details here