Rakesh Jhunjhunwala stock: Big Bulls beaten-down housing finance stock can gain up to 20% in short-term-here is why
Rakesh Jhunjhunwala stock: Shares of housing finance company held by ace investor Rakesh Jhunjhunwala in his portfolio can give up to 20 per cent return in the short-term
Rakesh Jhunjhunwala stock: Shares of housing finance company held by ace investor Rakesh Jhunjhunwala in his portfolio can give up to 20 per cent return in the short-term, as per an expert.
The counter has been trading under pressure and has corrected over 20% in the past one month, while it gave a negative return of over 50% in the past one year as on June 7.
Shares of Indiabulls Housing Finance, one of the stocks of Rakesh Jhunjhunwala's portfolio, declined marginally in Tuesday's intraday trade to Rs 114.60 per share.
Fondly called Big Bull of the Indian stock market, Jhunjhunwala holds 60 lakh shares of the housing finance company in the quarter ended March 2022, as per the latest corporate filing of the company.
The billionaire investor had bought 10 lakh additional shares of Indiabulls Housing Finance in the recently concluded quarter, raising his stake in the company from 1.1% in December 2021 quarter to 1.3% in March 2022.
On Monday's closing price of Rs 116.05 per share, Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, sees around 20% upside and in the near term.
"On last Friday, the stock cleared the short-term resistance of 123, but once again it witnessed a profit booking at higher levels. We are of the view that the short-term texture of the stock is non-directional. Perhaps, traders are waiting for breakout on either side," said Athawale.
For the bulls now, 125 or 25-day SMA would be the important breakout level to watch out for, said the expert.
"If the stock manages to close above the same, we could expect quick uptrend rally towards 135-140. On the flip side, trading below 118 or 20-day SMA may increase further weakness up to 114-108," added Athawale.
At 12.45 on Monday, this beaten-down Jhunjhunwala's counter has been trading with a gain of one per cent to 117.30 per share on the BSE.
Meanwhile, Rakesh Jhunjhunwala and Associates publicly holds 34 stocks in the quarter ended March 2022. The value of these stocks has been pegged at over Rs 28,973.1 crore, as per trendlyne.com, a platform to analyse stock market data.
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