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HDFC Bank, the largest bank by market capitalisation, posted sharpest intraday drop in 6 weeks, and technicals suggested the end of uptrend. The stock fell as much as 2.49 per cent to Rs 2,058, in its sharpest intraday drop since April 23.
The stock has reversed its course after testing a resistance at Rs 2,155.88, the 38.2 per cent Fibonacci projection level of the uptrend from November 25, 2016 low to February 1, 2018 high.
On Friday, the stock had formed a bearish harami candlestick pattern. Harami is a reversal pattern consisting of a long white candle followed by a small black candle with open and close contained within the body of the first candle.
The stock's wave pattern suggested the completion of fifth wave of a five-wave uptrend and the wave A of a corrective cycle has started. HDFC Bank stock was up 12.72 per cent this year as of Friday, outperforming the broader NSE Index's 1.57 per cent gain.
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