Score 7.9 (out of 10): HDFC Bank poised to rally +3.7% in 1 month

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Insight:

HDFC BANK LIMITED has reached a new shorter-term low. Previously, during similar occasions, HDFC BANK LIMITED shares had a median return of +3.7%, over the following 1 month based on 10 historical occasions with 9 of those showing positive returns (90% hit ratio). This buy signal for HDFC BANK LIMITED received a high score of 7.9 (out of 10). This insight was generated on 2021-September-15 with last price of 1541.95. HDFC BANK LIMITED is in the Commer Banks Non-US business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 15.2% more (average). Ticker symbol: HDFCB IN.

Details:

NameHDFC BANK
ViewUp
Star (1 to 10)7.9
Target+3.7%
Time1 month
Hit Rate90%

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

2.4% (June-2021), -4.3% (March-2021), 10.3% (January-2021), 3% (December-2020), 8.1% (September-2020), 5.1% (July-2020), 13.4% (May-2020), 0% (January-2020), 1.5% (December-2019), 4.4% (August-2019)

How have we arrived at this insight:

The conditions that led to similar insights previously have just been triggered in the market, making this ‘insight’ relevant right now.

While sorting through the mountains of data, our data engine detected a statistically relevant historical relationship between this ‘insight’ and the asset. Our data engine aims to optimize between statistical relevant relationships (high accuracy), situations that are relevant right now (entry timing) and ideal trade horizon (exit timing).

Based on the statistical significance of previous returns in similar situations, a high score indicates a more statistically relevant expected ‘future’ move for this particular asset. After calculating various scenarios, we found the optimal trade horizon for this particular relationship to be 1 month.

We calculate the median return for those previous situations (median is calculated by taking the ‘middle’ value, the value for which half the observations are larger and half are smaller) to determine the +3.7% estimated target return.

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