How To Profit From India’s Bull Market – HDB HDFC Bank – Financial Stock With Strong Chart

by Olivier on July 18, 2015

India is shaping up to resume its bull market. The most natural thing to do, as I wrote in my chart annotations, is to look for the strongest stocks around. Get exposure to the best stocks. That’s how you dramatically increase your odds of profiting from a bull market that might unfold in India. Ideally the stocks you want to buy should display the following characteristics:

  • Trading at or near their All Time High
  • The chart should offer great overall pattern pressure

One stock fitting those criteria is HDB – HDFC Bank. It is highly liquid and has a 50 Billion market cap. The advantage of going with leaders is very easy to explain. If the bull market scenario is not materializing, the leaders are typically the last ones to get sold. That way one has ample time to get out without running the risk of suffering big losses.

Click on IFN – India Fund weekly chart to enlarge:

IFN India Fund Big Upside Potential Bull Market Technical Analysis Price Chart Pattern

The IFN – India Fund is in the process of building a bullish ascending triangle. If we get follow through and price subsequently breaks out to the upside, from a purely technical perspective, I see 20% upside potential within the next 6 – 9 months.

Click on HDB – HDFC Bank daily chart to enlarge:

HDB HDFC Bank Financial Stock India Big Upside Potential Bull Market Technical Analysis Price Chart Pattern

As outlined above this is my go to stock offering the highest odds for profiting from India’s bull market.

Conclusion: It’s really simple. HDB – HDFC Bank has no Overhead Resistance. Hence it is a ‘Blue Sky Potential’ stock.

HDB company description from Yahoo finance:

HDFC Bank Limited provides a range of banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. The company operates in Treasury, Retail Banking, Wholesale Banking, and Other Banking Business segments. It accepts savings accounts, salary accounts, current accounts, fixed and recurring deposits, demat accounts, safe deposit lockers, and rural accounts, as well as offshore accounts and deposits. The company also offers personal, business, home, consumer durable, car, two wheeler, gold, educational, rural, and term loans; loans for professionals; loans against property, securities, and assets; overdrafts; government sponsored programs; and working capital, healthcare, channel, short term, structured, dealer, and vendor finance, as well as agricultural lending. In addition, it provides credit, debit, and prepaid cards; private banking services; export, import, remittance, bank guarantees, and letter of credit services, as well as merchant and cash management services; life, health, motor, travel, home, and insurance products; and investment product, such as mutual funds, equities and derivatives, IPO, gold and silver investments, and bonds. Further, the company offers bill discounting, real time gross settlement, bankers to right/public issue, forex, money market, employees trusts, and tax collection services; and investment banking services in the areas of project appraisal, structured finance, loan syndication, debt capital markets, equity placement, mergers and acquisitions, corporate advisory, and capital market advisory services. Additionally, it provides correspondent banking, settlement, custodial, disbursement, clearing, and administrative and fiduciary support services, as well as online and mobile banking services. As of March 31, 2015, the company operated a network of 4,014 branches and 11,766 ATMs in 2,464 cities/towns. HDFC Bank Limited was founded in 1994 and is based in Mumbai, India.

We’re in the business of making mistakes. Winners make small mistakes, losers make big mistakes. – Ned Davis


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