Todays Pick

HDFC (₹2,671.6): Buy

Akhil Nallamuthu BL Research Bureau | Updated on August 10, 2021

The stock of Housing Development Finance Corporation (HDFC), after marking a fresh all-time high of ₹2,896 in mid-February, started to decline. It soon slipped below the support of ₹2,800 as the bulls were unable to hold on to these levels and there was considerable drop in price in the subsequent months. However, the decline started to lose momentum towards the end of March. When the stock reached the support at ₹2,365 in early May, the drop was completely arrested.

Thereafter, the stock did not make much gains and it was blocked by the resistance at ₹2,610 from making further upmove. In fact, the price action on the daily chart shows that ₹2,610 has been acting as a resistance since March. However, last week, the stock rallied past that level with good volumes, opening the door for further gains. Besides, the relative strength index and the moving average convergence divergence indicators are showing signs of positive momentum. Hence, one can buy the stock with a stop-loss at ₹2,600 and target of ₹2,800.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on August 11, 2021

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