HDFC, LIC Housing, CanFin Homes: RBI measures likely to keep stocks buoyant

Stocks of housing finance companies gained ground post the RBI policy on Friday. Will the up move sustain? Here's what technical charts say

Shares of banks and non-bank finance companies, including housing finance, gained ground on Friday after the after the Reserve Bank of India (RBI) announced liquidity boositing measures while keeping the key rates unchanged.

LIC Housing Finance, Mahindra & Mahindra Financial Services, Indiabulls Housing Finance, PNB Housing Finance, Housing Development Finance Corporation (HDFC) and Repo Home Finance were up 4 per cent to 9 per cent in intra-day trade today. READ ABOUT IT HERE

Given the developments, is it time to buy HFCs from a short-to-medium term or will the rally fizzle out? Here's what charts say. 

LIC Housing Finance Ltd (LICHSGFIN): A clear breakout above the 200-days moving average (DMA) with the Moving Average Convergence Divergence (MACD) crossing the zero line upward firmly suggests there is more upside likely in the coming sessions. The charts signal a confirm breakout towards Rs 340 levels if the follow-up buying gains momentum in the next couple of sessions. The immediate support comes at Rs 292 levels with the counter moving in the direction of Rs 320 on the immediate scale.  CLICK HERE FOR THE CHART
 
Housing Development Finance Corporation Ltd (HDFC): The stock has been able to move above the 200-DMA, placed at Rs 1,908. The resistance lies between Rs 1,900 to Rs 1,950 levels. A breach can take it towards Rs 2,060 and then Rs 2,100 levels. The stock is showing extensive buying despite the Relative Strength Index (RSI) being in an overbought condition. CLICK HERE FOR THE CHART
 
Can Fin Homes Ltd (CANFINHOME): A formation of “Higher High, Higher low” on the charts has pushed the stock higher. This rally can take the stock higher towards Rs 500 and then Rs 516 levels, which are the levels that witnessed selling in February / March, 2020. The formation of “Golden Cross” is also indicating that higher levels will be possible in the days ahead. There is support at Rs 440 levels on a closing basis. CLICK HERE FOR THE CHART
 
PNB Housing Finance Ltd (PNBHOUSING): The stock has doubled in last four months - from the lows of Rs 165 in June, 2020 to the current high of Rs 373. The momentum is strong and likely to see added interest of market participants. The “Golden Cross” formation on the daily chart vindicates this stand. The immediate support comes at Rs 345. Till the counter trades above Rs 300, the upside bias may see a rally towards Rs 450 and then to Rs 470 levels. CLICK HERE FOR THE CHART