HCC Views!!!

Hindustan Construction Co (HCC), founded in 1926 by Seth Walchand Hirachand, is an engineering construction private company.

There is a lot of buzz about its LAVASA project dubbed as the “Free India’s Largest Hill City”.

Even after recording higher sales, Hindustan Construction Company (HCC) has posted a 36% drop in net profit in the December quarter because of a write-back of excess tax in the comparable period last year!

Now the question is that was the share dumped coz of the above news or was it that it was caught up in the grand scheme of things i.e. the markets falling!

Let’s look at the Daily chart of HCC, from the chart below we can see;

• A failed breakout above 150 and now back into the range.

• A rising wedge accompanied by negative divergences gets broken.

• The 20/50 periods MA’s give way and now the only average below is the 200 at 120!

It looks now to test the 130 zone, and below that it’s 120. It’s a good company and is not bad if you get it at 120/10(wedge targets) odd levels with long term targets at 250+! For the lesser mortals; us traders, we can see if it takes support at 130, thereby try and get in with a tight stop below 130 for a ride to 150. As for the momentum guys it’s a clean break above 150 that will again set up this stock into bullish territory!