HDFC Bank Ltd. Sees High-Value Trading Amidst Short-Term Downtrend

Robust Trading Volumes Highlight Market Attention

On the trading day, HDFC Bank recorded a total traded volume of 90.56 lakh shares, translating into a substantial traded value of ₹87,028.06 crores. This places the stock among the most actively traded equities by value on the Indian bourses. The stock opened at ₹962.70 and touched an intraday low of ₹956.00, closing at ₹961.55 as of 09:45 IST, marking a decline of 1.37% from the previous close of ₹977.50.

The narrow intraday trading range of ₹9.00 suggests a consolidation phase, with the stock oscillating between ₹956.00 and ₹965.00. This limited price movement amid heavy volumes indicates a battle between buyers and sellers, with neither side gaining decisive control.

Price Performance and Moving Averages Signal Short-Term Weakness

HDFC Bank’s recent price action has been subdued, with the stock falling for two consecutive sessions, resulting in a cumulative decline of 3.88%. This underperformance is notable against the private sector banking sector’s modest gain of 0.16% and the Sensex’s slight dip of 0.20% on the same day.

Technically, the stock is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a bearish short- to medium-term trend. Such positioning often reflects investor caution and potential profit booking after recent gains.

Institutional Interest and Rising Delivery Volumes

One of the most encouraging signs for HDFC Bank is the marked increase in delivery volumes, which reached 2.19 crore shares on 5 January 2026. This represents a 121.89% rise compared to the five-day average delivery volume, indicating heightened investor participation and confidence in the stock’s medium-term prospects.

Institutional investors appear to be accumulating shares despite the recent price softness, a factor that could provide support and limit downside risk. The stock’s liquidity remains robust, with the capacity to absorb trades worth approximately ₹37.35 crores based on 2% of the five-day average traded value, making it attractive for large order flows.

Mojo Score Upgrade Reflects Strong Buy Sentiment

MarketsMOJO’s latest assessment upgraded HDFC Bank’s Mojo Grade from Buy to Strong Buy on 2 January 2026, reflecting improved fundamentals and positive outlook. The bank’s Mojo Score stands at a robust 80.0, underscoring its quality and growth potential within the private sector banking space.

With a market capitalisation of ₹14,79,842.48 crores, HDFC Bank remains a dominant large-cap stock, commanding significant investor interest. The Market Cap Grade of 1 further confirms its stature as a blue-chip entity with strong institutional backing.

Sectoral and Market Context

Despite HDFC Bank’s recent underperformance, the private sector banking sector has shown resilience, with a modest positive return of 0.16% on the day. The broader Sensex index declined marginally by 0.20%, reflecting mixed market sentiment amid global economic uncertainties and domestic macroeconomic factors.

HDFC Bank’s relative weakness compared to its sector peers may be attributed to profit-taking or short-term technical corrections. However, the sustained high-value trading and rising delivery volumes suggest that long-term investors remain confident in the bank’s growth trajectory.

Valuation and Outlook

While the stock currently trades below key moving averages, the strong institutional interest and upgraded Mojo Grade indicate potential for recovery. Investors should monitor the stock’s ability to hold support near the ₹956–₹962 range and watch for any breakout above the 5-day and 20-day moving averages as a sign of renewed momentum.

Given the bank’s robust fundamentals, large market capitalisation, and improving quality scores, HDFC Bank remains a compelling pick for investors seeking exposure to India’s private banking sector. However, short-term volatility may persist as the market digests broader economic developments.

Investor Takeaway

HDFC Bank’s high-value trading activity and rising delivery volumes highlight strong investor interest despite recent price softness. The upgrade to a Strong Buy Mojo Grade and a high Mojo Score of 80.0 reinforce the bank’s quality credentials and growth potential.

Investors should weigh the short-term technical weakness against the bank’s solid fundamentals and institutional support. Those with a medium- to long-term horizon may view current levels as an opportunity to accumulate, while traders should remain cautious of volatility and monitor key moving averages for directional cues.

Overall, HDFC Bank continues to be a cornerstone stock in the private sector banking space, combining liquidity, market leadership, and improving quality metrics that favour sustained investor confidence.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →