Synopsis:HDB Financial Services Ltd has developed a cup-and-handle pattern on the 4-hour chart, indicating a bullish continuation or trend reversal.
The cup-and-handle pattern indicates a steady recovery followed by a brief consolidation, signalling that buyers are absorbing supply before a potential bullish breakout.
The cup-and-handle pattern features a rounded recovery (the cup) followed by a shallow, downward-sloping consolidation (the handle). A breakout above the handle’s resistance signals a potential bullish continuation.
On Wednesday, HDB Financial Services Ltd broke above the neckline of a cup & handle pattern on the 4-hour chart. A sustained move above Rs 630 could pave the way for further upside, while a drop below this level may weaken the bullish outlook.
In a cup-and-handle pattern, targets are typically set at the next key resistance level or estimated by projecting the depth of the cup upward from the breakout point. Traders generally trail profits while monitoring for a volume surge to confirm the strength of the bullish continuation.
HDB Financial Services Ltd Chart: 4-hour Timeframe
Indicator Confirmation
- RSI: The daily RSI indicates bullish momentum, as it rose from 45.08 in the previous trading session to 53.88 on Wednesday.
- MACD: On the daily time frame, the blue MACD line was above the orange signal line, with the histogram turning green, indicating bullish momentum.
- Moving Averages: On the daily time frame, the 5-day moving average was above the 9-day moving average, further confirming a bullish trend.
- Price Volume Trend: The Price Volume Indicator confirms the uptrend, accompanied by a sharp increase in buying volume in the daily time frame.
Implications
The cup & handle pattern indicates a potential upward move. Holding above the Rs 630 support level, backed by strong volumes, would reinforce bullish momentum in the near term.
About the stock
Established in 2007 as an HDFC Bank subsidiary, HDB Financial Services (HDBFS) is an upper-layer NBFC. It provides diverse loan products across three key verticals: enterprise lending, asset finance, and consumer finance. Catering to individuals and businesses, HDBFS operates an extensive omni-channel network. As of December 2025, the company maintains 1,744 branches across 1,165 cities.
Over the past month, HDB Financial Services Ltd has edged up by 0.69%. Over a six-month period, the stock has dropped by 13.02%, and on a year-over-year basis, it is down 23.12%. For more such technical stock ideas, click here to view our research page.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
