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HDFC AMC made a new lifetime high as it zoomed past its previous high of Rs 2,370 and closed at Rs 2,392 on Tuesday. The stock continued to rally on Wednesday and has recorded a new high of Rs 2,478.8. With this upmove, the stock has broken out of the Rs 2,050 and Rs 2,330 range, implying an upcoming bullish trend.
After declining to Rs 1,305 at the beginning of the year, the stock reversed its trend and rallied strongly until July. Subsequently, after losing momentum and trading in a sideways trend for a month, the stock has once again turned bullish. The breakout of the upper band of the consolidation range has opened the door for further upside.
On Monday, the stock closed above its 20-day moving average, bouncing-off from a trendline support in the daily time frame. Also, the Relative Strength Index (RSI) stays comfortably above 50, indicating a bullish bias. Hence, one can buy the stock on dips and hold until it breaks below Rs 2,200. Short-term potential targets are Rs 2,570 and Rs 2,610.
Supports: 2,330 and 2,220
Resistances: 2,570 and 2,610
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