Technical analyst Abhishek Jain of Stocksidea.com has suggested investors to buy HDFC Bank for short term.

Mr. Jain expects the stock to hit a target of Rs 1600.

According to Mr. Jain, the stock may face some resistance around Rs 1545 levels, but after that it can even have more upward movement.

The scrip has very strong support at Rs 1321.

Shares of the bank, on Friday (July 17), closed at Rs 1435.30 on the Bombay Stock Exchange (BSE). The total volume of shares traded was 437,511 at the BSE. The stock hit an intraday high of Rs 1447 and a low of Rs 1375on BSE.

The share price has seen a 52-week high of Rs 1580 and a low of Rs 774 on BSE. Current EPS and P/E of the stock stood at 56.11 & 25.58 respectively.

Mr. Jain said that the stock is looking strong technically. Interested investors can buy the stock for short term.

For the three month period ended June 2009, HDFC Bank has posted a standalone net profit of Rs 6.06 billion, up 30.53%, as against Rs 4.64 billion in the same quarter last year.

Interest earned during the said quarter increased 13.02% to Rs 40.93 billion, whereas total income for the same period surged 21.86% to Rs 51.37 billion.

Tor the quarter ended June 30, 2009, the bank’s net interest income (interest earned less interest expended) stood at Rs 18.55 billion, which was driven by average asset growth of 10.5% and net interest margin of 4.1%.

Other income posted strong year on year growth of 75.9% to Rs 10.44 billion for the three month period ended June 30, 2009.

The bank saw substantial growth in operating profit margin of 520 bps as against the corresponding period of the last fiscal to 29.56%. Operating profit for the quarter rose by 47.8% to Rs 15.19 billion.

HDFC Bank’s overall capital adequacy ratio (CAR) as at June 30, 2009 remained strong at 15.4%, as compared to the regulatory minimum of 9%. Tier-I CAR was 10.6% as of June 30, 2009.