The stock of Housing & Urban Development Corporation (HUDCO) saw a steady decline in price between mid-July and October. The downtrend began on the back of the resistance at ₹350. But in November, the stock found support at ₹200, and the bears lost traction. Last week, it recovered on the back of ₹200 and moved above both 20- and 50-day moving averages. The scrip also broke out of the resistance at ₹230.
We expect the stock to appreciate to retest ₹350 over the next few months. Buy at ₹238 and accumulate if the price dips to ₹215. Place initial stop-loss at ₹185. When the stock rises to ₹275, revise the stop-loss to ₹245. When the stock touches ₹320, tighten the stop-loss further to ₹290 for the remaining position. Exit at ₹350.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)