Bajaj Housing IPO buzz: 2 home finance stocks with up to 14% upside likely
Technical chart suggests that PNB Housing Finance and Repco Home Finance can potentially rally up to 14 per cent from present levels.
 "Bajaj Housing IPO buzz: 2 home finance stocks with up to 14% upside likely")
The Bajaj Housing Finance IPO has been off to an encouraging start, with over 2 times subscription at the end of Day 1 of the offer period. The Rs 6,560 crore IPO priced in the range of Rs 66 - Rs 70 per share had received bids for more than Rs 10,000 crore worth of equity shares as of yesterday.
On Monday, the HNI or non-institutional investors led the bidding, with subscription up to 4.5 times the allotted quota. Similarly, QIBs (Qualified Institutional Buyers) and retail investors segment also were subscribed 1.1 times and 1.5 times, respectively.
Grey Market Premium suggests a likely bumper opening for the stock, with off-trades taking place up to 90 per cent premium. READ MORE
Against, this background, with the Bajaj Housing Finance listing expected early next week here are two stocks from the housing finance segment which look strong on technical charts and could potentially rally up to 14 per cent from present levels.
PNB Housing Finance
Current Price: Rs 1,069
Upside Potential: 11.3%
Support: Rs 1,020; Rs 1,010
Resistance: Rs 1,116; Rs 1,152
PNB Housing Finance stock has been on an 8-week winning streak, having rallied 38.5 per cent during this period, from levels of Rs 780 to present. The long-term chart suggests that the overall bias at the counter is likely to remain bullish as long as the stock holds above Rs 1,010 - Rs 1,020 support zone.
On the upside, the stock can potentially jump to Rs 1,202 levels; with interim resistance likely at Rs 1,116 and Rs 1,152. CLICK HERE FOR THE CHART
Repco Home Finance
Current Price: Rs 547
Upside Potential: 14.3%
Support: Rs 517
Resistance: Rs 573
Repco Home Finance stock has given a breakout on the daily scale, with the stock trading above its super trend line resistance. Similarly, the weekly scale the stock has reclaimed its 20-WMA (weekly Moving Average) support. The near-term bias for the stock is likely to remain positive as long as the stock holds above Rs 517.
On the upside, the stock seems on course to test Rs 625 levels; with interim resistance seen at Rs 573. CLICK HERE FOR THE CHART
