HUDCO - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 3.6

📊 Chart Patterns: HUDCO is trading below both its 50 DMA (224 ₹) and 200 DMA (224 ₹), showing short-term weakness. Current price (212 ₹) is near support at 210–215 ₹, with resistance around 224–230 ₹. Broader range remains 200–230 ₹.

📉 Moving Averages: Price below both averages indicates bearish sentiment. Sustaining above 224 ₹ is needed to regain strength.

📉 RSI: At 32.3, RSI suggests the stock is oversold, indicating potential rebound opportunities.

📉 MACD: Negative at -6.17, confirming bearish momentum and signaling caution for short-term traders.

📊 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and possible short-term bounce.

📈 Volume Trends: Current volume (28,63,278) is higher than average weekly volume (22,51,849), showing increased participation despite weakness.

📌 Short-term Momentum Signals: Weak momentum with oversold RSI. A bounce is possible if price holds above 210 ₹. Breakout above 224–230 ₹ could trigger recovery toward 240 ₹.

🎯 Optimal Entry Zone: 210–215 ₹ (near support).

🎯 Optimal Exit Zone: 224–240 ₹ (near resistance).

📉 Trend Status: The stock is consolidating with a bearish bias, awaiting reversal signals.

Positive

• Quarterly PAT growth (710 Cr. vs 630 Cr.), up 3.08%, highlights earnings resilience.
• EPS of 14.0 ₹ supports valuation strength.
• DII holding increased by 0.66%, reflecting domestic institutional support.
• PEG ratio of 0.92 indicates fair growth relative to valuation.
• Dividend yield of 1.95% provides steady shareholder returns.

Limitation

• Stock trading below both 50 DMA and 200 DMA shows weak technical strength.
• High debt-to-equity ratio (7.03) raises concerns about leverage risk.
• ROCE (9.62%) is modest compared to peers.

Company Negative News

• FII holding decreased slightly (-0.02%), showing marginal reduction in foreign investor confidence.

Company Positive News

• DII holding increased, reflecting domestic investor confidence.
• Quarterly PAT growth highlights operational resilience.

Industry

• Industry PE at 21.2 is higher than HUDCO’s PE (15.1), suggesting undervaluation relative to peers.
• Housing finance sector outlook remains positive, supported by government initiatives and urban development.

Conclusion

⚖️ HUDCO shows fundamental strength with steady profits, fair valuation, and supportive DII inflows. However, technically the stock is consolidating below key averages with bearish signals from RSI and MACD. Entry is favorable near 210–215 ₹ with cautious exit around 224–240 ₹. Long-term investors may hold for sector growth, while short-term traders should wait for confirmation above 224 ₹.