HCC shares surge 9% to hit one-year high; here's what analysts say

Shares of Hindustan Construction Company Ltd soared 9.20 per cent to hit their 52-week high price of Rs 32.42. The counter eventually settled 6.77 per cent higher at Rs 31.70 today. The company, in a BSE filing, said it will sell its Swiss construction unit to a French firm for Rs 928 crore. "Steinier AG, Switzerland, a material subsidiary of HCC, has entered into a share purchase agreement with Demathieu Bard for divestment of its entire equity interest in Steiner Construction SA, Switzerland, for Rs 928 crore," it stated.

In a separate development, the Mumbai-based company said its subsidiary, HCC Infrastructure Co, has received Rs 110 crore as an earn out money from Cube Highways and Infrastructure V Pte as a part of the Baharampore-Farakka Highways Ltd stake sale transaction.

On the technical front, immediate support on the counter could be seen around Rs 28 level while resistance may be found in the Rs 33-odd zone. A decisive breach above the mentioned resistance is required for a further upward move.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "HCC is in a stellar bull run, hovering well above all its major EMAs (Exponential Moving Averages) on daily charts. Also, the stock is maintaining the cycle of higher highs – higher lows, suggesting an inherent bullish trend. Rs 28-27 levels are likely to cushion any blip, followed by strong support at Rs 24. On the higher end, the counter looks poised to test Rs 40-odd level in a comparable period."

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "Next near-term target visible is at around Rs 35 level and thereafter if strength sustains, the stock may see Rs 40-41 levels. At current levels, the near-term support lies near Rs 28.50 which."

AR Ramachandran from Tips2trades said, "HCC looks bullish on daily charts and a close above resistance of Rs 33 could lead to target of Rs 36 in the near term. Support will be at Rs 29.2."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "As we advance, the short-term trading range is expected between Rs 27 and Rs 35. Support will be at Rs 28 and resistance near Rs 33."

(Disclaimer: Business Today provides stock market news 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.)

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