Investors with a short-term perspective can sell the stock of DLF at current levels. The long-term trend is down for the stock. Since encountering a key resistance at around ₹235 in June 2014, the stock has been on an intermediate-term downtrend. In early April, after failing to break through the significant resistance level of ₹165, the stock declined sharply and breached its 21- and 50-day moving averages as well. The short-term downtrend is intact.
On Tuesday, the stock tumbled 3.8 per cent accompanied by above average volume breaking a key long-term support at ₹121. With this decline, the stock’s downtrend appears to have gained strength. Moreover, there is no immediate support to cushion the stock. It can extend its downtrend and reach the price target of ₹112.5 and then ₹110 in the upcoming sessions. Sell the stock with a stop-loss at ₹119.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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