Private lender
HDFC Bank's shares fell as much as 2.7 per cent to Rs 2,032, its lowest since November 26, on Tuesday.
The stock broke below a key support at Rs 2,064.95, the 14.6 per cent Fibonacci retracement level of the uptrend from November 25, 2016 low to July 18, 2018 high (wave-3).
The stock's wave pattern suggests it is in the final wave C of the correction that started from July 18.
In the near term, the stock has a support at its 50-day exponential
moving average and at Rs 2,014.05, the 38.2 per cent Fibonacci projection level of wave A.
However, the current wave has the potential of falling up to Rs 1,807.
Momentum indicator moving average convergence divergence, or MACD has cut below its signal line, which is a bearish sign.
The stock is up 11.6 per cent this year as of the last close while the broader NSE index is down 0.4 per cent in the same period.