HDFC Bank loses nearly Rs 1 lakh crore in market cap over three days — Is there more downside in store?

The stock has a 52-week low at Rs 1,365, while Rs 1,757 is its 52-week high, which it hit after the merger announcement with HDFC. At the current price, the Relative Strength Index (RSI) on the charts is at 38 and is nearing oversold levels. An RSI reading below 30 indicates that the stock is in oversold territory.

This is also the second straight day of decline for HDFC Bank's shares after Monday's two percent drop. Three technical analysts that CNBC-TV18 spoke to believe that the rangebound action may continue in the stock. Here's what they had to say:

Ruchit Jain of 5paisa.com believes that the stock has been a relative underperformer since the merger announcement and the prices may go through some consolidation and correction in the near-term. Immediate support is seen in the 1,530 - 1,500 range.

HDFC Bank has been trading in a 200-point range for the last 10 months with a lower band of Rs 1,500 and an upper band of Rs 1,700, said Rupak De of LKP Securities. "Despite a recent sharp correction, the stock has not broken down from of this range, indicating its continued consolidation within these levels, with demand returning around 1,500," he said. According to De, only a decisive break below levels of Rs 1,500 will trigger a significant breakdown in the stock, else the rangebound movement will continue.

On the weekly charts, HDFC Bank is nearing its Ichimoku cloud support of 1,550 along with testing of the bullish trendline from the March 2020 low, said Anand Rathi's Jigar Patel. He expects the stock to bounce from levels of Rs 1,550 in the near-term.

Shares of HDFC Bank are trading 3.75 percent lower at Rs 1,568.