Angel One analyst Osho Krishan has provided a detailed technical outlook for two prominent housing finance companies, Can Fin Homes Ltd and Home First Finance Company India Ltd. His analysis suggests a potential medium-term recovery for Can Fin Homes, while advising a more cautious, dip-buying strategy for Home First Finance.
Can Fin Homes Poised for Technical Pullback
Krishan points to Can Fin Homes trading near a "very strong historical support zone of Rs 800-820." This range has historically seen significant rebounds for the stock. Despite recent negative technical developments, Krishan believes the longer-term price structure makes Can Fin Homes an attractive consideration for a medium-term recovery trade.
He forecasts a technical pullback for Can Fin Homes, with a near-term target of Rs 870-880. Investors are advised against a lump-sum investment, instead recommending a staggered accumulation strategy given the stock has already undergone a sharp correction. The stock is now showing signs of stability, supporting the potential for an upward move.
Home First Finance: Accumulate on Dips
Regarding Home First Finance Company, Krishan's assessment is more measured. While acknowledging the stock looks "quite decent," he refrains from calling its chart decisively bullish at current levels. His preferred strategy for investors is to wait for lower entry points rather than chasing the stock.
Krishan identifies Rs 1,140-1,135 as an initial accumulation zone for Home First Finance. Should the stock experience further weakness, a deeper buying band around Rs 1,075-1,080 is suggested. He emphasizes the need for patience, cautioning against deploying a large amount of capital at current prices.
Investor Implications
For investors with a six-month horizon, the analysis provides clear guidance: Can Fin Homes presents a more immediate rebound opportunity from its established support levels. In contrast, Home First Finance is positioned as a watchlist candidate, awaiting more favorable entry points for gradual accumulation. The broader market sentiment, particularly within the banking sector, also plays a crucial role in the performance of these housing finance counters.
Disclaimer: This article provides market analysis for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.