In racing, whether it’s a horse derby or any other, the horse is always the star of the show. But there’s one person who can make all the difference between winning and losing: the jockey. The jockey is the one who controls the horse, sets the pace at every twist and turn and uses strategy to ensure that the potential turns into victory.
Similarly, timing and leadership are the keys to success in the stock market. The jockey here is HDFC Bank, driving the performance of Bank Nifty and Nifty.
HDFC BANK: The Jockey with 32% Weightage in Bank Nifty
HDFC Bank isn’t just a participant in the Bank Nifty race; it’s leading it. With a massive 32% weightage in the Bank Nifty index, HDFC BANK isn’t just another stock, but rather the engine behind the performance of the entire sector.
The HDFC BANK stock price broke through an all-time high, crossing Rs 2,027 and entering uncharted price territory. This is like a jockey guiding a horse through tricky turns and keeping it on track toward victory.
HDFCBANK Weekly Chart
Source: Tradingview
Looking at the weekly chart, we see that HDFC BANK has moved out of a long consolidation phase and made a strong bullish retest. This indicates that it’s not just going with the flow; it’s steering the entire index. The Bank Nifty, in turn, has also made new highs, largely thanks to HDFC BANK’s momentum. But now, the big question is, can HDFC BANK continue to play the role of the jockey and lead the way?
The Ratio Chart Analysis
To analyse the outperformance and underperformance of HDFC Bank against Bank Nifty and Nifty 50, the ratio chart can help answer the question. When the ratio is rising, it means HDFC BANK is outperforming; when it falls, it’s lagging behind.
HDFCBANK vs. Bank Nifty Ratio Chart
Source: Tradingview
Analysing the ratio chart of HDFC BANK versus Bank Nifty on a weekly chart, we see a promising trend. The ratio has reversed from a multi-year breakout level, as the resistance has now become support. Post the reversal, the ratio breaking out from a falling channel pattern is another bullish sign, indicating that the HDFC Bank is regaining control.
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