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DLF stock has risen sharply in the last two weeks. Can I accumulate at this level? What is the outlook for this stock?
Gopalakrishnan Sundramoorthi
DLF (₹413.50): The share price of DLF has surged 15.8 per cent over the last couple of weeks. Immediate resistances are at ₹426 and at ₹450. This can be tested in a week or two. A pull-back from either of these two resistances can drag the stock down to ₹400-380 again. However, from a medium- and long-term perspective, the outlook is bullish. The stock has been in a strong uptrend since March 2020. This uptrend is intact. So eventually, DLF share price can breach ₹450 and can rally to ₹540-550 over the medium term, say in the next two-three quarters.
After that, one leg of corrective fall to ₹450 is a possibility. From a long-term perspective, DLF share price can target ₹650-700. You have not mentioned your actual buy price. However, assuming that you are a long-term investor, consider accumulating now and also on dips at ₹380. Have a stop-loss at ₹330. Move the stop-loss up to ₹420 as soon as the stock rises to ₹470. Revise the stop-loss further up to ₹520 when the DLF share price touches ₹580. Exit the shares at ₹630.
I had bought shares of Hindustan Aeronautics (HAL) at ₹2,828. I am in loss now. What should I do?
Megha
HAL (₹2,806.25): Structurally the stock of HAL has been in an uptrend and it is intact. Strong support is now in the ₹2,500-2,450 region. Also, the price action since November last year on the monthly chart indicates that the HAL shares have been bought every time it comes near ₹2,400. So, HAL may have to make a strong monthly close below ₹2,400 to indicate a trend reversal. Only in that case the stock will come under huge selling pressure. Resistances are at ₹2,980 and ₹3,035.
A strong break above ₹3,035 will see the HAL share price rallying to ₹3,450-3,500. Keep a stop-loss at ₹2,420 and hold the stock. In case a dip happens from current levels, buy more at ₹2,600. If this dip does not happen and even if you are not able to accumulate more on dips, don’t worry. Stick to the stop-loss and hold it. Revise the stop-loss up to ₹2,910 when the stock rises to ₹3,100. Move the stop-loss further up to ₹3,220 when Hindustan Aeronautics’ stock price touches ₹3,290. Exit the shares at ₹3,420.
What is the long-term outlook for the stock of Godawari Power and Ispat Ltd (GPIL)?
Farhan, Salem
GPIL (₹371.15): The Godawari Power and Ispat Ltd stock has been very volatile in a broad range since mid-2021. It has been oscillating between ₹220 and ₹500. Within this, the stock has been poised around the mid-point of the range. That makes the short-term outlook unclear. There is room on the downside to test ₹320-310. On the weekly chart, this ₹320-310 region looks to be a strong support as the 100-Week Moving Average and a long-term trend line supports are poised there.
So, a fall below ₹310 will be less likely. So as long as the stock stays above ₹310, the bias is bullish to break ₹500. Such a break can take the GPIL share price up to ₹650 over the long term. If you have a very high-risk appetite, then buy at current levels. Accumulate on dips at ₹335. Keep a stop-loss at ₹220. Revise the stop-loss up to ₹390 as soon as the stock moves up to ₹470. Move the stop-loss further up to ₹520 when the share price touches ₹590. Exit at ₹630.
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