This stock needs no introduction , it is India’s finest housing finance company and a consistent wealth creator . The stock has seen relative underperformance due to uncertain lockdowns and subsequent fear of growth in NPA and margin shrinkage . But if we take a broader view of economy housing sector seems to be doing well specially after results of key housing construction companies of India. If commentary from these construction companies are to be believed the housing loan book is set to surge in coming months.
HDFC ltd has been under temporary pressure but we believe the stock has potential to move over 10% in short term. At current price of 2487 one can enter the stock and hold for levels of 2800 by July to Mid Aug 2021 .
Option data shows support at 2500 levels where highest PUT OI is built and but at the same time 2500 has highest Call option OI too. This indicates the stock will face resistance at 2500 ,but if able to cross 2500 there is a high probability to reach 2800 levels.
Its surprising that this stock has lowest P/E growth after LIC Housing finance , this indicates that stock has not been traded by speculative traders with ample liquidity who are chasing growth and fueling asset prices of much smaller housing finance companies on comparative basis .