ICICIdirect issued a Buy call on Housing Development Finance Corporation (HDFC). The stock broker recommends buying stock in the range of Rs 1,005-1,025 for a target price of Rs 1,190 with a stop loss below Rs 918 for duration of three months.

Commenting on investment rationale, the stock broker said, ”HDFC has witnessed concentrated accumulation in call options at 1,040 and 1,100 strikes. As the stock is showing initial signs of reversal from its support levels of Rs 1,020, closure among these Call strikes is evident. We believe with this sustained movement, further short covering may be seen in the stock, which may propel it towards Rs 1,180 in the days to come."

"We believe strong hands are providing support to the stock near these levels and major declines are not expected in the near term. Moreover, being the favorite of FIIs, major declines are not expected in the stock. Since September 2013, HDFC has not spent much time below its 100 DMA levels and has witnessed reversal on all occasions. Currently, the 100 DMA for the stock is at Rs 990, which is unlikely to be breached," it said.

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