Buy HDFC, target of Rs. 2870: India Infoline
Tuesday, 06 April 2010, 20:56 IST
By SiliconIndia
By SiliconIndia
Mumbai: India Infoline is bullish on HDFC and has recommended a buy rating on the stock with a target price of Rs. 2870. According to the brokerage, last Thursday, HDFC broke out past its recent peak of Rs. 2,760 which was acting as a stiff resistance for the stock since last three months. Daily chart suggests formation of distinctive pattern this is most likely to result into a short-term rally in the counter.
Housing Development Finance Corporation (HDFC) provides housing finance. HDFC's distribution network spans 267 outlets, which include 56 offices of the wholly owned distribution company, HDFC Sales. In addition, HDFC covers over 2,400 locations through outreach programmes. Its subsidiaries include GRUH Finance, HDFC Asset Management Co., HDFC Developers, HDFC ERGO General Insurance, HDFC Holdings, HDFC Investments, HDFC Property Ventures, HDFC Realty, HDFC Sales, HDFC Trustee Co., HDFC Venture Capital and HDFC Ventures Trustee.
India Infoline believes that the current breakout is likely to lead to a potential upside up to the levels of Rs. 2,870 and above. Momentum oscillators are also exhibiting strength in the upmove. It expects the stock to remain in the momentum as long as it sustains above its last week low of Rs. 2,715. With the recommended target price of Rs. 2870, if the stock is bought at Monday’s closing price of Rs. 2789.55, the percentage of gain would be 2.80 percent.
Housing Development Finance Corporation (HDFC) provides housing finance. HDFC's distribution network spans 267 outlets, which include 56 offices of the wholly owned distribution company, HDFC Sales. In addition, HDFC covers over 2,400 locations through outreach programmes. Its subsidiaries include GRUH Finance, HDFC Asset Management Co., HDFC Developers, HDFC ERGO General Insurance, HDFC Holdings, HDFC Investments, HDFC Property Ventures, HDFC Realty, HDFC Sales, HDFC Trustee Co., HDFC Venture Capital and HDFC Ventures Trustee.
India Infoline believes that the current breakout is likely to lead to a potential upside up to the levels of Rs. 2,870 and above. Momentum oscillators are also exhibiting strength in the upmove. It expects the stock to remain in the momentum as long as it sustains above its last week low of Rs. 2,715. With the recommended target price of Rs. 2870, if the stock is bought at Monday’s closing price of Rs. 2789.55, the percentage of gain would be 2.80 percent.
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