Buy HDIL, target of 333: IndiaInfoline

Bangalore: IndiaInfoline Research is bullish on Housing Development and Infrastructure (HDIL) and has recommended a buy rating on the stock with a price target of 333. According to the brokerage, HDIL has rallied smartly from a low of 296 in first week of February 2010 to the present levels. Despite the ongoing volatility in the market, the stock has managed to hold on to the support of its 200-DMA.

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HDIL is an India-based company engaged in real estate development and construction of residential and commercial properties, infrastructure facilities and all other related activities. The company's subsidiaries include Privilege Power and Infrastructure, HDIL Entertainment, HDIL Oil and Gas, Mazda Estate and HDIL Leisure. On the daily charts, the stock has formed a pattern of a higher bottom. It is considered as the initial sign of a bottoming out process in the short term.

According to IndiaInfoline, the daily Relative Strength Index of HDIL is already in strong buy mode, indicating that the prices are set to rally from the current levels. A sustained move past the 318 levels will see the stock heading towards the levels of 330-335 in the medium term. With the recommended target price of 333, if the stock is bought at Monday's closing price 294.40, the percentage of gain would be 13.11 percent.