The stock of Dewan Housing Finance Corporation (DHFL) surged 4 per cent on Wednesday with above average volume, recording a strong close above the immediate resistance at ₹460 levels. This rally gives buying opportunity for traders with a short-term perspective. Taking support at around ₹383 in early June, the stock resumed its long-term uptrend. While trending upwards, it decisively breached its moving average compression at around ₹425 in early July.
The daily as well as weekly price rate of change indicators are hovering in the positive territory implying buying interest. Even the daily moving average convergence divergence indicator is in line with the stock price and signifies bullishness. The short-term outlook for the stock is bullish. The uptrend can extend and reach our price target of ₹492 and ₹502 in the forthcoming trading sessions. Buy the stock with a stop-loss at ₹463.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)