HDFC is the healthiest growing Housing Finance Company in India. They have a strong balance sheet and the markets as usual expect healthy double digit growth from them this Financial Year.
The fact is, they will actually report healthy numbers but not meeting/exceeding market and analyst estimates since they received Dividend from HDFC bank in addition to stake sale of Gruh Finance. Also following that 9.89% stake acquisition was carried out in Bandhan Bank. Result day trading is always volatile and SLs are usually taken out during result announcement, no matter the trade going for or against you. Candles with long wicks and +/- 1% runs in a matter of minutes make it a risky trade.
However, this analysis is for Long term view of the Housing Finance industry conditions in India which have not turned out rosy for it's peers.
Having a well balanced debt structure may keep investors hungry to invest at Lower levels, betting on Fundamentally sound companies to healthily exist no matter the conditions is the mantra for investment!
As for intra day, it is contingent for me on HDFC reporting <15% growth in NII and Loan growth.
The fact is, they will actually report healthy numbers but not meeting/exceeding market and analyst estimates since they received Dividend from HDFC bank in addition to stake sale of Gruh Finance. Also following that 9.89% stake acquisition was carried out in Bandhan Bank. Result day trading is always volatile and SLs are usually taken out during result announcement, no matter the trade going for or against you. Candles with long wicks and +/- 1% runs in a matter of minutes make it a risky trade.
However, this analysis is for Long term view of the Housing Finance industry conditions in India which have not turned out rosy for it's peers.
Having a well balanced debt structure may keep investors hungry to invest at Lower levels, betting on Fundamentally sound companies to healthily exist no matter the conditions is the mantra for investment!
As for intra day, it is contingent for me on HDFC reporting <15% growth in NII and Loan growth.
Trade active:
Shorted at 2180 with SL at 1%- 2205
RR 1:3
Exceeded market expectations with result, good 1% run during result on 5min candle.
I strongly believe the massive 60% YoY jump in profit was aided by pre-tax gain constituting almost 40% of the profit by stake sale in Gruh Finance.
RR 1:3
Exceeded market expectations with result, good 1% run during result on 5min candle.
I strongly believe the massive 60% YoY jump in profit was aided by pre-tax gain constituting almost 40% of the profit by stake sale in Gruh Finance.
Comment:
Two Views-
Rejection at 2200 resistance
Cup and Handle Breakout pattern if price sustains above 2200
Rejection at 2200 resistance
Cup and Handle Breakout pattern if price sustains above 2200
Comment:
Opened near SL, rejected at 2200.
Position Held with SL 2205 on closing basis
Position Held with SL 2205 on closing basis
Trade closed: stop reached
why is it worth shorting:
Loan Growth below estimates at 12%
NPA increased 1.5%
Provisions decreased 1.2%
Average loan size decreased