PICK OF THE WEEK: HDFC (NSE)
25th November 2019
Pick of the Week: Buy HDFC in Cash @ 2235 & Upto 2215 SL 2100.00 TGT 2551.00
- Housing Development Finance Corporation Limited was founded in 1977 as the first specialized Mortgage Company in India. HDFC was promoted by the Industrial Credit and Investment Corporation of India and it is a leading provider of Housing Finance in India with its customized solutions it has fulfilled over 7 million dreams since inception
- HDFC's distribution network spans 396 outlets which cater to approx. 2,400 towns and cities spread across India. To cater to Non-Resident Indians, HDFC has offices in London, Singapore and Dubai and service associates in Middle East countries.
- In addition, HDFC covers over 90 locations through its outreach programmes. HDFC's marketing efforts continue to be concentrated on developing a stronger distribution network. Home loans are also sourced through HDFC Sales, HDFC Bank Limited and other third party direct selling Agents (DSA).
- Major subsidiaries and associates- HDFC’s key associate and subsidiary companies include HDFC Bank Limited, HDFC Standard Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited, HDFC Asset Management Company Limited, GRUH Finance, HDFC Venture Capital Limited, HDFC RED and Credila Financial Services Private Limited.
- Technical Outlook
- On a monthly chart, after a healthy correction from its All-time high, the stock has taken a support at 1984.40 level which is a 50.00 % Retracement level of its previous up move from 1628.99 level to 2340.80 level which suggests a bounce back movement in the counter.
- Moreover, the stock is trading and sustaining above its 21 Month Simple Moving average which signifies positive rhythm in the stock.
- On a weekly chart, the stock has been trading in Rising wedge formation and also formed a "Hammer Candlestick” which is a Bullish Reversal structure and suggests an upside movement in the counter.
- On a daily chart, the stock has given a breakout of its of “Flag Formation” which is a continuation formation and suggests a further upside movement in the counter.
- Furthermore, the stock has been trading with the support of its “Lower Bollinger band“ which indicates a bounce back movement in the counter.
- A daily momentum indicator RSI’s reading is at 46.51 level and about to make a positive crossover, apart from this, the RSI has taken strong support of its Rising Trend Lines which points out for a positive breath in the counter.
- Based on the above technical structure, we are expecting an upside movement in the HDFC in a few trading sessions.
Our Recommentation is to