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Investors with a short-term perspective can consider selling the stock of DLF at current levels. Since taking support at its key base level of ₹140 in early May, the stock accelerated. It breached important resistance levels and registered a new 52-week high at ₹242 on June 9. But the stock’s long-term resistance band between ₹240 and ₹250 halted this uptrend. Subsequently, the stock changed direction, triggered by negative divergence in the daily relative strengthen index and price rate of change indicator. Volumes have been declining over the past three weeks.
Hitting an immediate resistance at ₹220, the stock resumed its downtrend by declining 3 per cent on Thursday. The stock has also breached its 21-day moving average, confirming bearish momentum. The indicators on the daily chart are sloping downwards. The stock can extend its decline and reach the price target of ₹201.5 and then ₹197 in the coming sessions. Sell with a stop-loss at ₹214.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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