Buy HDFC Ltd in the range of Rs. 1835-1875
Target: Rs. 2140
Stop Loss: Rs. 1692
Time frame: Three months
Derivatives & Quantitative Outlook
The NBFC space has remained under pressure and was unable to perform in line with the market recovery in the past. However, in the recent recovery, stocks from the NBFC space witnessed fresh upsides and were major drivers of the index up move. Among heavyweights, HDFC Ltd is likely to move out from its three month consolidation zone. It is likely to test its major breakdown levels of Rs. 2150 in the ongoing recovery.
Like most stocks, open interest in HDFC has also declined substantially. From near 35 million shares in February it declined to 28 million shares in March and declined further to 26 million shares in May suggesting no addition of OI despite market recovery. However, in the last month itself, significant fresh addition of open interest was observed in the stock. We believe lower levels were used to accumulate the stock. There is ample room for fresh addition. We expect fresh longs to take the stock further higher.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_HDFC_Jul20.pdf
Shares of HOUSING DEVELOPMENT FINANCE CORP.LTD. was last trading in BSE at Rs.1885.85 as compared to the previous close of Rs. 1889.3. The total number of shares traded during the day was 129113 in over 7478 trades.
The stock hit an intraday high of Rs. 1916.9 and intraday low of 1867.55. The net turnover during the day was Rs. 243408055.