Shares of India’s largest private-sector lender, HDFC Bank, declined as much as 1% to an intraday low of Rs 938 on Friday, January 9, extending their losing streak to a fifth consecutive session. The stock has shed 6% over this period, ahead of the bank’s third-quarter earnings announcement scheduled for January 17. “HDFC Bank stock is showing a clear bearish structure on the daily chart, with price trading below all key EMAs (20, 50, 100, and 200), indicating weakness across all timeframes,” said Aakash Shah, Technical Research Analyst at Choice Equity Broking. The stock has been trending lower after the lender released its December quarter (Q3 FY26) business update.
Over the past year, HDFC Bank shares have gained 11%, outperforming the Sensex, which rose 8.5%, but lagging the BSE Bankex, which advanced 18%, according to BSE data. The stock touched a 52-week high of Rs 1,020.35 on October 23, 2025, and a 52-week low of Rs 812.13 on January 13, 2025. The recent correction has been attributed to relatively weak deposit growth and profit booking after the stock’s recent gains ahead of the Q3 earnings announcement. “The key concern appears to be deposit growth. Deposit accretion was lower than market expectations, especially compared to the previous quarter. The stock had outperformed last year, and some profit booking ahead of Q3 earnings cannot be ruled out,” said Ajit Mishra, SVP of Research at Religare Broking.
HDFC Bank is scheduled to announce its Q3 FY26 earnings on January 17, 2026. According to Systematix Research, the bank’s profit after tax (PAT) could register a healthy 11.2% YoY growth, while operating profit may rise 7.8% YoY. Net interest income (NII) is expected to grow 6.4% YoY. Experts remain largely positive on the stock, citing the bank’s strong fundamentals and strategic focus. “The bank aims to grow in line with the industry in FY26 and faster than the industry in FY27, with a focus on deposit growth and improving its loan-to-deposit ratio. HDFC Bank’s strong franchise, superior return on equity, and consistent profitability justify maintaining core positions. Its operational excellence, capital efficiency, and market leadership support its growth trajectory,” said Seema Srivastava, Senior Research Analyst at SMC Global Securities.
Mishra of Religare Broking has reiterated a buy rating on the stock with a target price of Rs 1,220. “We remain positive and would recommend buying the stock. This correction presents a buy-on-dips opportunity, especially for long-term investors,” he added.
However, while the long-term outlook remains constructive, some technical analysts advise caution until the stock moves back above its 200-day exponential moving average (EMA). Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, noted that HDFC Bank has decisively broken below its key rising trendline, signaling a pause in the prevailing uptrend and indicating near-term weakness.
“The stock is currently trading below its 200-day DEMA, reflecting a loss of medium-term momentum and cautious sentiment among market participants. On the downside, the Rs 940 zone emerges as an important historical support where buying interest was seen earlier,” Patel added.