Buy HDIL; target Rs 62.50: IIFL

IIFL is bullish on Housing Development and Infrastructure (HDIL) and has recommended buy rating on the stock with a target price of Rs 62.50 in its December 27, 2011 research report.

Real estate stocks are showing signs of strength in last few trading sessions. Especially, HDIL has emerged has a strong counter which has been trading firm above the support of Rs56. A detailed study of HDIL, shows a breakout pattern of rounded bottom on the daily chart, signaling temporary bottom. The overall base-like pattern carved out by the stock during the past two weeks appears to be maturing now. The daily RSI is indicating a positive crossover and thus turning reward to risk ratio on the positive side. We advise buying the above Rs 58.70 with stop loss of Rs 57 for target of Rs 62.50. (Duration 5 days),

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