The analyst highlighted the stock’s consolidation near key EMAs and its bullish chart structure marked by higher lows, indicating potential for an upward breakout.

Shares of Housing and Urban Development Corporation (HUDCO) may resume their upward move and retest ₹240 in the near term if the ₹220 support holds, according to SEBI-registered analyst Deepak Pal.

At the time of writing, HUDCO shares were trading at ₹230.61, up 0.4% on the day.

HUDCO is consolidating within a ₹220–₹230 range, and the recent bounce from key exponential moving averages (EMAs) suggests a bullish reversal, Pal said.

The company’s daily chart structure showed the stock respecting its 220-day exponential moving average, while closing above the 55-day EMA. 

He added that the stock also formed higher lows, a pattern often seen ahead of upward breakouts.

Pal recommended accumulating HUDCO on dips around ₹225–₹226, with a stop loss at ₹215 and a short-term target of ₹240.

On the fundamental side, Pal noted HUDCO’s low-risk lending profile, with over ₹85,000 crore in loans primarily to state governments and a net non-performing assets (NPA) of 0.5%. 

The company reported ₹2,115 crore in FY24 net profit on ₹7,002 crore in revenue, with a healthy net interest margin of 4.15%.

He said the stock trades at 8.5 times trailing earnings and offers a dividend yield of about 3.5%. The PSU remains aligned with key government initiatives such as Smart Cities and PM Awas Yojana.

On Stocktwits, retail sentiment was ‘extremely bullish’ amid ‘extremely high’ message volume.

The stock has declined 3% so far in 2025.

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