HDFC Bank Falls 1.9% to ₹744 on FII Selling, June 01

HDFC Bank fell 1.9% to ₹744.20 on May 29, driven by foreign institutional investor selling of ₹21,105.86 crore. The decline extends a six-month downtrend of 26.1%. Meyka rates the stock B+ with a 12-month target of ₹989.10, suggesting 33% upside from current levels. Near-term risks include below-normal monsoon forecasts and continued FII outflows.

Why FII Selling Hit the Stock

Foreign institutional investors dumped ₹21,105.86 crore of Indian equities on May 29, with HDFC Bank bearing the brunt as India’s largest private bank. The selling pressure overshadowed a 3.2% rally in Nifty IT stocks and a positive gap-up signal from GIFT Nifty at 23,860 points. Below-normal monsoon concerns added to the negative sentiment, weighing on the banking sector’s growth outlook.

Technical Levels for June 1 Trading

Analysts at Univest flagged critical support at ₹738 and resistance at ₹760 for June 1 trading. The stock closed at ₹748 on May 29 with a bearish technical setup. The options chain shows maximum call open interest at ₹765 and maximum put open interest at ₹738, signaling cautious investor positioning with a put-call ratio of 0.79.

Meyka Grade and Long-Term Outlook

Meyka assigns HDFC Bank a B+ grade with a 12-month price target of ₹989.10, implying 33% upside. The stock trades at a price-to-earnings ratio of 16.62 with an EPS of ₹44.79. Credit-deposit ratio trajectory and CASA franchise quality remain long-term positives, though near-term FII outflows create a negative overhang. The RSI at 39.15 signals oversold conditions, suggesting potential for a technical bounce.

Bank Holiday Schedule Impacts June Trading

HDFC Bank will observe 11 bank holidays in June 2026 under RBI guidelines. All scheduled and non-scheduled banks remain closed on the second and fourth Saturdays, plus all Sundays. This reduced trading calendar may amplify volatility around key support and resistance levels during active trading sessions.

Final Thoughts

HDFC Bank’s 1.9% decline reflects near-term FII pressure, but Meyka’s B+ grade and ₹989.10 target suggest limited downside risk. With oversold technicals and strong long-term fundamentals, the risk-reward favors patient investors at current levels.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.