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What should investors do with HDFC Bank and CAMS?

After a recent record-breaking rally, equity indices plunged 1% on Friday on across-the-board profit taking as US inflation data dashed hopes of a rate cut by June.

Stocks that were in focus included names like HDFC Bank, which fell 1.31%, Zomato, which declined 1.63%, and CAMS, whose shares rose 2.1% on Friday.

Here's what Santosh Meena, Head of Research at Swastika Investmart, StoxBox, recommends investors should do with these stocks when the market resumes trading today.


The stock has witnessed a breakout of an inverse head-and-shoulders formation on the daily chart with strong volume. But on 200-DMA at around Rs 1555 levels, it is facing some resistance and profit booking from those levels. The structure of the counter looks lucrative, as it is trading above all its important moving averages.

The momentum indicators are also positively placed. On the downside, Rs 1500 is the important psychological support level; below this, we can expect the 1480 level, while on the upside, Rs 1560 is the resistance level, above which we can expect the 1640+ level.


The stock is forming a pattern of higher highs and higher lows on a daily basis, which suggests a promising trend. Additionally, the counter is now trading near its all-time high of 199, which is likely to act as a resistance level. Currently, it is trading at 192. If the trend continues, the initial target will be 220.

If it manages to sustain its price above 220, we can expect targets of 250 in the short - -midterm. On the downside, the first support level is around 175, where the 20-day moving average is positioned.


The stock has recently broken out of a cup and handle formation on the weekly chart, signaling potential bullish momentum. The structure of the counter looks lucrative for long-term investors, as it is trading above all its important moving averages.

MACD (moving average convergence divergence) supports the current strength, whereas the momentum indicators are also positively poised.

Looking ahead, the immediate resistance for the stock stands at Rs. 3250. A successful breach of this level could pave the way for further gains towards Rs 3400 or beyond. On the downside, support is seen at Rs. 2950, with a strong demand zone around Rs 2850 in case of any corrective moves.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)