HDFC Bank may stay weak

After showing an impressive uptrend during 1997, the stock performance of HDFC Bank has not been as impressive this year. In the recent past, the stock has been showing weakening signs.

One of them has been the lower tops formed by the moving averages 12-day and 36 days. The averages have now entered into negative phase. Recently, the stock has also broken its immediate bottom as well as the support level of Rs 61.50. This has been a major negative sign and this level has now become the resistence level.

The position of oscillators like RSI and MACD is also far from impressive. All these factors hint at a bearish outlook. As such, investors who have entered at an early stage, should make an exit at the current levels. Re-entry can be considered later.