The stock of Housing & Urban Development Corporation (HUDCO) has gained 7 per cent with extraordinary volume on Thursday, breached a key immediate resistance at ₹51. This rally has strengthened the short-term uptrend that has been in place from this April low of ₹39.5 and has reinforced the bullish momentum. Investors with a short-term perspective can buy the stock.
The aforementioned short-term uptrend is intact for the stock. It trades well above the 21- and 50-day moving averages. While trending up, the stock has surpassed a key resistance at around ₹47 in late May and continued to move higher. Further there has been an increase in volume during advance days and the increasing volume indicates buying interest at every dip.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continues to feature in the bullish zone. Besides, the daily as well as the weekly price rate of change indicators feature in the positive terrain implying buying interest. It has potential to trend upwards and reach ₹55 and ₹56.5. Traders with a short view can buy the stock with a stop-loss at ₹51.
The recommendations are based on technical analysis. There is risk of loss in trading