Prashant Jain quits HDFC AMC: Here's how the stock looks on the charts

Shares of HDFC AMC had rallied significantly post its debut in July 2018. However, after hitting a peak at Rs 3,681 in November 2019, the stock has since then declined over 50 per cent.

Prashant Jain chief investment officer (CIO) of HDFC AMC and the poster boy for the domestic mutual fund (MF) industry quit the organisation after 19 years of service. 

Jain’s ability to deliver sustainable growth over a longer period gave him a cult status among investors and helped propel the growth of HDFC AMC. READ MORE

He has helped his investors generate outsized returns over a long-term horizon. His largest fund HDFC Balanced Advantage has delivered annualised returns of 17.9 per cent since its inception in 1994. HDFC Top 100 and HDFC Flexi Cap have given annualised returns of 18.8 per cent and 18.3 per cent since their inception in 1996 and 1995, respectively.

Jain, an alumnus of IIT Kanpur and IIM Bangalore, has been replaced by Chirag Setalvad, who will be head of equities, and Shobhit Mehrotra, who will helm the fixed-income segment at HDFC AMC. 

HDFC Asset Management Company (AMC) IPO was launched in July 2018 and the stock debuted with a 50 per cent gain to its issue price. Thereafter, the stock rallied over 122 per cent from its debut price to record a historic peak at Rs 3,681 in November, 2019. 

While the current price is well over the listed price, the stock trades close to 50 per cent lower when compard with its all-time high. 
 

Amid this backdrop, here’s an technical outlook on HDFC Asset Management Company stock going ahead: -

HDFC Asset Management Company Ltd (HDFCAMC)

Outlook: If conquers 100-DMA, 12 per cent upside is reasonable

Post the “Death Cross” breakdown in November last year, shares of HDFC AMC entered a bearish territory. The stock has lost 25 per cent since then and continues to witness heavy sell-off on pullback rallies. 

The major hurdle for the stock is seen around its 100-day moving average (DMA), currently placed at Rs 1,943, which it failed to decisively conquer since October 2021. On the other hand, the immediate support for the stock exists at the Rs 1,825-mark, its 50-DMA. A breach of the following support at Rs 1,700 might force the stock to enter a fresh bearish momentum.  

On the positive front, a robust move over the 100-DMA could see the stock head towards Rs 2,187-mark, which is its 200-DMA. CLICK HERE FOR THE CHART