Amit Harchekar – Chief Technical Strategist at A PLUS Analytics told CNBC-TV18, "Housing Development Finance Corporation (HFDC) has formed a bearish head and shoulder pattern and today the stock has already moved below the neckline support of Rs 1,110. So, we believe that the stock is likely to head towards the support zone of Rs 1,020-1,050 in the coming days. It has seen addition of nearly 17.2 lakh shares of open interest in last eight trading sessions and we believe this would force some delivery based selling in the coming days."
"Keeping a stoploss of Rs 1,140 we are recommending going short on HFDC for a target of Rs 1,020 in the coming days," he added.
At 13:51 hrs Housing Development Finance Corporation was quoting at Rs 1,087.80, down Rs 5.65, or 0.52 percent. It has touched an intraday high of Rs 1,102 and an intraday low of Rs 1,086.
Disclosure: Analyst and his family members do not have any positions in the stock mentioned but may have recommed the stock to his clients.
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