The stock of DLF gained 6.7 per cent accompanied by above average volume, breaking above a key resistance at ₹150 on Tuesday. This rally provides investors with a short-term perspective an opportunity to buy the stock at current levels.
After a short-term corrective decline in late June and early June, the stock took support at ₹134 and began to trend upwards. While trending up, the stock had recently surpassed its 21-day moving average. The recent 6.7 per cent jump has decisively breached the stock's 50-day moving average and the key barrier at ₹150. Moreover, this rally has strengthened the medium-term uptrend that has been in place since late March low of ₹114.
There has been an increase in daily volume over the past four trading sessions. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI features in the neutral region. Besides, the daily as well as the weekly price rate of change indicator are hovering in the positive terrain implying buying interest.
The stock has the potential to trend northwards and reach the price targets of ₹163.5 and ₹167 in the forthcoming trading sessions. Traders can buy the stock with a stop-loss at ₹153.5. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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