HDFC: Ideal for small investors

K Seshadri

In the speculative markets, the small investor often finds himself lost. What he needs is a scrip, where the downside risk is limited, preferably nil; and the upside potential is reasonable.

The HDFC (Housing Development Finance Company) stock ideally fits the bill. The scrip has established its bottom for quite some time now. The low was Rs 2100, but the real low is more like Rs 2150. In September, the scrip was at Rs 2600; earlier in February, it was at Rs 2800. With the markets turning bullish, the scrip has the scope to trace its way back. A target of Rs 2500 is not impossible in the next few weeks. It is an ideal choice for the short and the long term small investor. The stochastic and RSI indicators on the daily and weekly charts signal a buy.

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