The Bajaj Housing Finance IPO is off to a promising start, with nearly two times the subscription at the end of Day 1 of the offer period. As of Friday, the Rs 6,560 crore IPO, which was priced between Rs 66 and Rs 70 per share, has received bids for more than Rs 10,000 crore in equity shares.
On Monday, HNI or non-institutional investors dominated the bidding, with subscriptions reaching up to 4.5 times the authorized quota. Similarly, the QIB (Qualified Institutional Buyers) and retail investor segments were subscribed to 1.1 and 1.5 times, respectively.
Grey Market Premium indicates a possible blockbuster opening for the stock, with off-trades at up to 90% premium. Read more. Against this backdrop, with the Bajaj Housing Finance IPO expected early next week, here are two housing finance stocks that appear good on technical charts and could potentially rally up to 14% from their current levels.
PNB Housing Finance
Current price: Rs 1,069
Upside Potential: 11.3%.
Support: Rs 1,020 and Rs 1,010.
Resistance: Rs 1,116 and Rs 1,152.
PNB Housing Finance shares has been on an 8-week winning streak, up 38.5 percent from Rs 780 to the present. The long-term chart indicates that the overall bias at the counter will likely continue to be optimistic as long as the stock remains above the Rs 1,010 - Rs 1,020 support zone. On the upside, the stock might rise to Rs 1,202 levels, with interim resistance anticipated at Rs 1,116 and Rs 1,152. CLICK HERE FOR THE CHART.
Repco Home Finance
Current price: Rs 547.
Upside Potential: 14.3 percent
Support: Rs 517.
Resistance: Rs. 573.
Repco Home Finance stock has broken out on the daily chart, trading above its mega trend line resistance. Similarly, on a weekly basis, the stock has recaptured its 20-WMA (weekly moving average) support. The stock's near-term bias is likely to remain bullish as long as it trades over Rs 517. On the upside, the stock appears poised to target Rs 625 levels, with interim resistance at Rs 573.
