DLF (₹156.1): Sell

Yoganand D BL Research Bureau | Updated on October 28, 2020

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Investors with a short-term horizon can sell the stock of DLF at current levels. Following a medium-term uptrend from the March low of ₹114, the stock had encountered a key resistance at ₹180 in late August.

Thereafter the stock started to move sideways. The significant medium-term resistance in the band between ₹175 and ₹180 had capped the stock's rally in the past week. Subsequently, the stock began to decline. On Wednesday, the stock tumbled 5.4 per cent accompanied by above average volume, breaching both the 50- and 200-day moving averages. Moreover, the stock has breached a key immediate support at ₹163. The stock has formed a bearish engulfing candlestick pattern on the weekly chart indicating short-term trend reversal. The daily relative strength index is charting downwards in the neutral region and the weekly RSI is also featuring in the neutral region. The short-term outlook is bearish for the stock and it can continue to trend downwards. Short-term targets are ₹149 and ₹146. Traders with a short-term view can sell the stock with a stop-loss at ₹160. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on October 28, 2020

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