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The stock tumbled almost 7 per cent, accompanied by extraordinary volume, following its second quarter results announcement on Friday. Its net profit fell 11.6 per cent to Rs 1065.58 crore from Rs 1205.03 crore in the corresponding quarter of last year. Increase in gross NPAs from 2 per cent to 4.6 per cent also dented market sentiment.
After encountering significant long-term resistance at Rs 850 and 200-day moving average in late September, the stock began to decline.
It appears to have resumed its intermediate-term downtrend that has been in place ever since the November 2010 peak at Rs 1,395.
Medium-term trend is also down. The stock has key short-term support in the band between Rs 670 and Rs 700. A strong fall below this band will pull the stock down to Rs 600 and then to Rs 530 in the medium-term.
On the other, the stock has important resistances at Rs 800 and Rs 850. Only a decisive close above Rs 850 will reinforce bullish momentum and take the stock higher to Rs 910 and to Rs 945. The stock has to emphatically rally above Rs 1,050 to alter its intermediate-term downtrend.
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