HUDCO shares zoom 20% to hit one-year high level; can this rally continue?

Shares of Housing And Urban Development Corp Ltd (HUDCO) soared 19.63 per cent to scale their 52-week high level of Rs 136.47 in Thursday's trade. The multibagger stock has gained around 155 per cent in 2023. HUDCO has recently executed a Memorandum of Understanding (MoU) with the Gujarat government for an investment up to Rs 14,500 crore for financing housing and urban infrastructure projects in the state.

On techncial setup, support on the counter could be seen at Rs 130, followed by Rs 127, Rs 125, Rs 120 and Rs 115 levels. On the higher side, the stock may scale up to Rs 155. That said, one of the analyst also said traders should book profits at current levels.

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher, said, "The ongoing rally can continue further to achieve higher targets of Rs 152-164 levels. The major support zone from current levels would be Rs 115, below which the bias would turn little bit cautious. The overall trend could turn weak only after a decisive breach below the Rs 105 zone."

Jigar S Patel, Senior Manager - Technical Research at Anand Rathi Shares and Stock Brokers, said, "As we advance, any dip towards support levels of Rs 120–125 can be used as adding fresh longs for the upside target of Rs 150–155. Monthly stochastics is continuously trading in an overbought zone, which is a sign of further upside in the counter."

DRS Finvest founder Ravi Singh suggested a near-term target price of Rs 145 for HUDCO, keeping a stop loss placed at Rs 130.

AR Ramachandran from Tips2trades said, "HUDCO stock price is bullish but also overbought on daily charts with next resistance at Rs 150. Investors should book profits at current levels as a daily close below support of Rs 127 could lead to Rs 111 in the near term."

The stock saw heavy trading volumes today as around 1.88 crore shares were seen changing hands on BSE. The figure was way higher than the two-week average volume of 40.90 lakh shares. Turnover on the counter stood at Rs 242.18 crore, commanding a market capitalisation (m-cap) of Rs 26,939.57 crore. There were 29,95,012 buy orders against sell orders of 7,88,701 shares.

As of September 2023, promoters held 81.81 per cent stake in the company.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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