HDFC rallies over 3% on better than expected Q4 results

NEW DELHI: HDFC Ltd surged over 3 per cent on Wednesday after the housing finance company reported 17.2 per cent rise in net profit for the Jan-March quarter, helped by higher disbursal.

At 02:30 pm, HDFC was trading pared some of its gains and was trading 2.8 per cent higher at Rs 877.10. It hit a low of Rs 853 and a high of Rs 881 in trade today on the Bombay Stock Exchange.

The stock is trading very close to its 52-week high of Rs 882 which the stock hit on December 11, 2012. The stock has gained nearly 6 per cent so far in the year 2013, as of data collated on May 8 (intraday).

Standalone net profit for the fiscal fourth quarter was Rs 1,555 crores compared with Rs 1,326 crores reported a year earlier, and total income rose 16 per cent to Rs 5,666 crores over the same period.

HDFC's loan book at end-March stood at 1.7 trillion rupees, up 20.6 per cent from a year earlier, it said in a statement to the stock exchange.

“The short term crucial resistance of HDFC Ltd is placed at Rs 885 and if it is able to maintain above this level, another 5-7 per cent rally is expected in the stock,” said Ranajit Kumar Saha, Senior Manager- Technical Research at Microsec Capital Ltd

“The immediate strong support of the stock is at Rs 835,” he added.

Saha recommends holding long positions in the stock with stop loss of Rs 835. However, the fresh long positions can be initiated only above Rs 885.