HUDCO Trapped In A Narrow Range; SEBI RA Maintains Cautious Outlook

The company approved plans to raise upto ₹3,000 crore through NCDs on Thursday

State-run Housing & Urban Development Corporation (HUDCO) continues to trade within a narrow consolidation range, with no clear breakout or breakdown signal yet, according to SEBI-registered analyst Vijay Kumar Gupta.

On the daily chart, price action is trapped inside the Ichimoku Cloud, indicating indecision and a lack of directional trend, Gupta noted.

The commodity channel index (CCI) is weak at -34.19, indicating fading momentum and limited buying interest, while on-balance volume (OBV) remains flat at ₹3.46 billion, suggesting low participation and a lack of accumulation.

Key resistance lies between ₹235 and ₹240, with heavy supply seen from an order block and fair value gap (FVG), Gupta added.

Support seems steady between ₹225 and ₹220, but a decisive close below ₹220 could trigger downside towards ₹200 - ₹190, the analyst said. Conversely, a breakout above ₹235, accompanied by strong volume, could allow for a potential move towards ₹260.

Fundamentally, the stock appears weak. Although the infrastructure sector is likely to receive a budget-led boost, HUDCO appears to have already priced in much of that optimism.

Mid-cap infrastructure stocks have been in the profit booking phase, and volumes in HUDCO are declining, signaling limited institutional interest and a pause in momentum.

The stock is in a sideways coil, awaiting a trigger, the analyst said.

Separately, the company approved plans to raise up to ₹3,000 crore through unsecured, redeemable Non-Convertible Debentures (NCDs) via private placement on Thursday.

HUDCO shares were down 1.3% at ₹226.27, minutes before Friday’s close.

Year-to-date, the stock has shed over 3.5%. Its losses over a one-year period is 32.59%.

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