HUDCO, NBCC jump up to 8% on heavy volumes; Charts show bullish trend

In the last six months, HUDCO share price has zoomed over 170 percent, while NBCC has clocked impressive returns of 97 percent during this period.

Shares of Housing and Urban Development Corporation (HUDCO) and NBCC (India) jumped 8 percent on May 8 on heavy volumes and technical bullishness. According to analysts, a strong bounce back from lows including the Nifty Smallcap also led both stocks to rise significantly in intraday trade.

At 1:37 pm, HUDCO shares were trading 8.2 percent up at Rs 225.15 on the National Stock Exchange (NSE). So far in the day, around 3 crore shares of the company changed hands on BSE and NSE combined, compared to the 1-week and 1-month average trading volume of 2 crore shares.

"Technically, HUDCO is bullish on the daily charts with strong support at 207 level. A daily close above the resistance of 230 could lead to target of 266 in the near term," said A R Ramachandran of Tips2trades.

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Earlier this month, Care Ratings reaffirmed 'stable' ratings for various instruments of HUDCO, given that the company continues to derive strength from being strategically important to the government for the implementation of various government policies in social housing and urban infrastructure-related sectors and Gol being a majority stakeholder.

"Ratings take comfort from a majority of the lending by the company being backed by a guarantee from various state governments with the company receiving budgetary provision, wherever required, from governments for their respective debt servicing," the rating agency said.

Ratings also draw comfort from the company's diversified resource profile, healthy capitalisation metrics and adequate liquidity profile," Care Ratings added.

HUDCO shares have clocked impressive gains of 300 percent in the last one year, outpacing Nifty 50 which rose around 21 percent during the same period. The multibagger has more than doubled investors' cash in the last six months, rising over 176 percent.

Meanwhile, NBCC shares were trading over 5 percent higher at Rs 135.25 on NSE, as a total of one crore shares changed hands so far in the day. The stock has a 1-week average trading volume of one crore shares.

"NBCC stock price also looks bullish on the daily charts with strong support at 126.7 level. A daily close above the resistance of 143.4 could lead to a target of 171 in the near term," Ramachandran told Moneycontrol.

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NBCC has delivered multibagger returns of 224 percent in the last one year, outperforming benchmark Nifty 50. In the last six months, the stock has zoomed nearly 97 percent, nearly doubling investors' money.

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