The stock of DLF has been in a strong downtrend since October last year. This week, the stock has declined sharply below the 200-Day Moving Average (DMA) which is currently posied at ₹358. In addition to this, the 21-DMA has made a bearish cross-over with the 200-DMA. This strengthens the bearish case. Though the stock has risen sharply by 6 per cent on Wednesday, the upside is likely to be capped. Immediate resistanece is at ₹349. Above that, the 200-DMA is likely to act as the next strong resistance now.
As such we can expect the stock to reverse lower again and resume the downtrend. The stock can fall to ₹322 – the 38.2 per cent Fibonacci retracement support. A further break below ₹322 will then increase the chances of the fall extending towards ₹282 – the 50 per cent Fibonacci retracement support level. Traders can go short now and accumulate at ₹348 and ₹354. Keep the stop-loss at ₹363. Trail the stop-loss down to ₹339 as soon as the stock falls to ₹331. Move the stop-loss further down to ₹328 as soon as the stock dips to ₹322. Book profits at ₹315.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.