‘Indiabulls Housing a good pick for investors'

Mumbai: Shares of Indiabulls Housing Finance, which have climbed 76 per cent in the past one month, are coming back into D-Street’s reckoning after the home financier began cleaning up its balance sheet to align asset inflows with liability outflows.The stock is consolidating at its 200-day moving average of Rs 230 on robust volumes.“The stock went down because of concerns over asset-liability mismatch and liquidity issues like most of the other NBFCs,” said Sanjiv Bhasin, director, IIFL Securities. “But now that is not the case for Indiabulls Housing. Investors with high risk appetite can buy the stock even at this level for a decent gain in the short- to mid-term.”The stock ended at Rs 230.55 on Monday. It was stuck in a range, between Rs 200 and Rs 240, in the last seven trading sessions and has gone into F&O ban period from Monday. It has seen fresh open interest addition of around 35 per cent in the last seven trading sessions of the July series.“If it manages to cross and hold above the immediate hurdle of 240 zones, then it can see momentum toward 263 and then 275 levels, led by short covering,” said Chandan Taparia, derivatives & technical analyst, Motilal Oswal Financial Services. “However, 210-200 zones could continue to provide support for the immediate bullish stance of the counter.”Last week, Indiabulls sold Rs 4,000 crore of real estate loans to distressed-assets investor Oaktree Capital. The company with a liquidity buffer of around Rs 12,000 crore has managed to raise Rs 7,600 crore in the last three months through bonds and term loans, according to the company.However, some analysts suggest waiting for some correction to buy the stock. “The ban in F&O could lead to some pressure on the stock in the near term. Thus, it may be prudent to wait for better entry levels,” said Arjun Yash Mahajan, head of institutional business, Reliance Securities.