Investors with a short-term horizon can sell the stock of DLF at current levels. The stock has been in a short-term downtrend since encountering a key resistance at ₹223 in late August 2018. Key resistance in the band between ₹220 and ₹223 as well as the 200-day moving average poised in this band limited the stock’s upside in late August. Subsequently, the stock changed direction triggered by negative divergence in the daily price rate of change indicator. While trending down, the stock had decisively breached key supports at ₹200 and ₹180.
On Thursday, the stock conclusively broke through the key support at ₹180 by tumbling 5 per cent with good volume. With this fall, the stock has strengthened its downtrend. Moreover, the medium-term trend is also down for the stock. The daily as well as weekly relative strength indices are featuring in the bearish zone, backing the stock’s down-move.
Overall, the short-term outlook is bearish for the stock of DLF. Targets are ₹165.5 and ₹162. Traders can sell with a stop-loss at ₹176.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)