Indiabulls Housing Finance, HDFC: Should you stay away from HFCs?

Till Indiabulls Housing Finance does not consolidate at the current levels at least for two months with above average volumes, one should not be optimistic

Housing Development Finance Corporation (HDFC): The counter is showing “lower closing” scenario on the daily charts. There is selling pressure on every subsequent swing (highs) and weakness on the closing basis. Till the counter does not close above Rs 2162 levels, which is the recent peak close, one should not be aggressively positive. There can be a possible turnaround, but the stock needs to hold the momentum on the closing basis. On the other hand, if HDFC closes below Rs 1,950 levels, then the stock may see more selling pressure in the days ahead. CLICK FOR CHART VIEW

 

Indiabulls Housing Finance Ltd(IBULHSGFIN): 'Avoid' is the word that sums up the strategy for the counter based on the outlook as per charts. This is a falling knife and staying away from it should be the best strategy. Relative Strength Index (RSI), which is trading in overbought territory, is not exhibiting any signs of recovery. Till the counter does not consolidate at the current levels at least for two months with above average volumes, one should not be optimistic. A new 52-week low on Thursday signals that the counter may dip below Rs 170.CLICK FOR CHART VIEW

 

LIC Housing Finance Ltd (LICHSGFIN):  A “Death Cross” on the daily chart has damaged the upside potential. Going ahead, the counter may see selling pressure on every reversal. Even a rise of 7 -10 per cent may eventually see sell-off. LIC Housing is not performing at the bourses after having positive divergence on RSI, which means price itself shows weakness (broken recent reversal low). Rs 390 remains a strong resistance zone. CLICK FOR CHART VIEW

 

PNB Housing Finance Ltd (PNBHOUSING): The counter that hit a new lifetime low has not found too many buyers. The RSI has entered overbought territory recently, and there is still more room for the stock to go down. The last time when the RSI staged a bounce-back from the overbought territory, the stock did not see much of a buying interest, and this may continue for a few more sessions. The immediate support comes at Rs 502.CLICK FOR CHART VIEW

 

Can Fin Homes Ltd (CANFINHOME): The counter is trading above 100-DMA from March 2019, currently placed at Rs 373.10 levels. This has become the immediate support for the stock, which even saw buying nearing this average. There is no doubt that the counter is well positioned for an upside that has “Higher highs, Higher lows” formation on the daily chart. The range of Rs 365 – Rs 360 shows a strong support, as per weekly chart. These levels are none other than 200-weekly moving average (WMA) and 100 WMA. The short-term resistance comes at Rs 406 and then at Rs 411.CLICK FOR CHART VIEW