New Delhi, Sept. 21 -- After hitting a 52-week low of Rs.682 on 11 September, HDFC Bank shares have rebounded, raising questions: Is it the right time to buy the stock, or is it just a technical rebound?

The banking stock is up over 4% so far in September, compared to a nearly 3% fall in the equity benchmark Sensex. While HDFC Bank shares look set to snap their two-month losing run, the Sensex is on course to extend its losses for the second consecutive month.

On 21 September, HDFC Bank stock rose by 1.49% to end at Rs.740, staying as the top contributor to the gain in the Sensex, which ended 0.76% higher at 74,859.

The fact that HDFC Bank stock has given negative returns over the last five years can make any investor cautious. The BSE...