IndiaBulls Housing Finance can explode on Daily - 75-100% upside

3 Mar 2021

IndiaBulls Housing Finance looks bullish on daily with huge potential upside both from Technical point of view and also based on fundamentals.

Fundamentals:
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• The company said in a statement that it will gradually reduce its wholesale book by 33% by March 2022.

• According to the company, it is also planning to double the retail customer base by March 2025 and said that retail loan disbursals have picked up on the back of rising sale house sales.

• The lender reported a consolidated net profit of ₹329 crore in the three months to December, down 39.7% on the back of lower income.

• Its gross non-performing assets (NPAs) stood at 1.75% of gross advances. Had it not been for the Indian Supreme Court’s dispensation on asset classification, gross bad loan ratio would have reached 2.44% as on 31 December.

• Also, it has restructured 0.95% of its loan assets and its collection efficiency has now reached around 98%.

Technicals:
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• The price has tested 0.117 Fib resistance a few times and is showing strong bull power on lower time frames to breach this resistance which will propel the price to 0.236 Fib resistance at around ₹ 400.

• Also, the Support/Resistance bands are squeezing and turning around showing some strong potential price move to the upside with the extreme top bands coinciding with the 0.236 Fib resistance where the Daily price will have its first test.

• Breaching this 0.236 resistance level, a big move can be expected to 0.382-0.618 (₹ 600 - 900 range) levels test, given the company hits its fundamental stakeholder expectations and its commitments.

The following 4hr chart shows price testing the top resistance bands and a big move is likely upon breach



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Do Your Own Research on Company fundamentals to get a good idea and its future potential.