HUDCO Stock In Consolidation Mode: SEBI Analyst Sees Signs Of Accumulation Before Breakout

Housing and Urban Development Corporation (HUDCO) shares are circling around ₹216, caught in a narrow ₹210–₹220 band. SEBI-registered analyst Deepak Pal said this quiet spell looks like an accumulation phase before the stock picks a direction.

Technical View

Pal noted that ₹212–₹210 is acting as the immediate floor, with stronger support near ₹205. On the upside, ₹220 has become a ceiling. If the stock holds above ₹220, the next leg could stretch to ₹228–₹232. 

A slip below ₹210, though, could drag it closer to ₹200, he said.

HUDCO is hovering close to its 50-day moving average and remains well above the 200-day mark, which Deepak Pal said signals the longer-term trend is still intact. In the short run, though, the averages have flattened out, suggesting the stock is stuck in a wait-and-see phase.

The Relative Strength Index is hovering at 45, right in the middle range. Momentum has been muted with the Moving Average Convergence Divergence (MACD) showing a flat to negative crossover, while the Parabolic SAR still signals near-term resistance.

Business Profile

HUDCO is a government-owned lender under the Ministry of Housing and Urban Affairs. 

It helps fund affordable housing along with urban infrastructure projects such as water supply, drainage, and roads. It also plays an important role in government programs like Pradhan Mantri Awas Yojana (Housing for All), the Smart Cities Mission, and AMRUT.

Strengths And Risks

Pal highlighted HUDCO’s government support, diversified lending mix, and steady financial ratios as clear strengths. 

However, he also flagged risks such as pressure on margins if interest rates climb, delays in infrastructure execution, and reliance on government schemes. Competition from private housing finance companies adds another challenge.

Growth Drivers And Outlook

Pal said that India’s rapid urbanization and the government's push for affordable housing and infrastructure remain strong growth engines for HUDCO. 

Supportive Reserve Bank of India policies and higher budget allocations could add more fuel. Still, he expects some near-term volatility due to the interest rate cycle and project risks.

“Valuations remain reasonable, making it attractive for long-term investors,” he said, adding that the consolidation now may offer accumulation opportunities.

Investors will be watching HUDCO’s second quarter (Q2) results for loan growth, disbursement trends, and asset quality. RBI’s monetary policy decisions and fresh budget allocations for housing and infrastructure will also be critical triggers.

What Is The Retail Mood?

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

HUDCO’s stock has declined 9% so far in 2025.

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