Trending Stock of the Day: HDFC AMC Witnesses Technical Breakout

The NSE benchmark index Nifty 50 slipped below the mark of 22,900 and was trading down by 0.14% on Tuesday. Most of the sectors were in red with Nifty Realty and Nifty PSU Bank leading at a drop of 2.02% and 1.14%, respectively.

Besides this profit booking and weak market breadth, one stock that bucked the market trend on Tuesday was HDFC AMC. The market breadth was weak with a ratio of almost 3:1 implying that for every three declining stocks, there was only one advancing stock on the NSE.

HDFC AMC Surpassing Milestone of Rs 6 Trillion in AUM

With a higher tilt towards equity-oriented assets HDFC AMC surpassed FY24 with Rs 6 trillion AUM thereby registering a growth of 39% YoY. During the last fiscal year (FY24), it expanded its product offering in sectoral/thematic space by launching five new funds. On the passive front, they have launched five index funds and two ETFs to improve their offerings.

3 million New Customers Added

For FY24, there was healthy growth in unique investor accounts- adding approximately 3 million customers. For FY24, the industry added 6.9 billion investors. And 3 million trusted people had their faith in HDFC AMC. HDFC AMC continues to hold the pole position when it comes to market share in individual investor AUM and second highest in terms of B30 AUM.

Technical View on HDFC AMC

The share price of HDFC AMC touched a fresh record high today at Rs 4041 per share on NSE yesterday. Technically speaking, the stock had crossed the prior pivot point which was the 14-week long stage-2 consolidation pattern having a depth of 13%.

The daily 14-period RSI is rebounding after forming a base at the nine-period average, supporting the positive bias. The daily MACD is pointing northward while sustaining above its nine-period average, further validating the positive bias in the stock.

In summary, the stock has broken above the pivot point and has an EPS rank of 84 implying that the company’s earnings have been consistent. The buyer demand is at B+, which suggests a positive attitude toward the stock while the pattern indicates a potential up-move of 13%. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.