What should I do with the stock of DLF purchased at ₹368 in February 2022? I can hold it till February 2024. What is the technical outlook for this stock?
Amit Sengupta, Kolkata
DLF (₹473.70): The outlook is bullish for DLF. The stock has been in a strong uptrend since April 2020. The recent fall from the high of ₹521.70, made in the first week of this month, is just a correction within the overall uptrend. Some more fall is possible within this ongoing correction. Strong support is in the ₹440-430 region which can halt the current correction. Below that ₹400 is the next important support. We expect DLF share price to see a fresh rally from the ₹440-430 support zone itself. That leg of upmove can take the stock price up to ₹550-560 by this year-end.
An eventual break above ₹560 will then open the doors for DLF to target ₹730-750 in the second half of 2024 or even earlier than that. Keep a stop-loss at ₹405 so that you can lock some profit. You can even consider accumulating around ₹445, if you can. Move the stop-loss up to ₹530 when the price moves up to ₹580. Revise the stop-loss further up to ₹630 when DLF share price touches ₹680. Exit the shares at ₹710. For this target of ₹710, you may have to hold this stock beyond February 2024, the time period you have mentioned.
I have bought Zomato shares at ₹81. I want to hold it for the next two-three years. What is the outlook?
Samarth P M
Zomato (₹89.38): The outlook is bullish. The downtrend that was in place since November 2021 has got reversed. Indeed the trend reversal has happened after a prolonged sideways consolidation between ₹40 and ₹80. This consolidation is also in the form of a double-bottom formation. This strengthens the case for the trend reversal. The recent fall in price from the high of ₹102.85 is just a correction that could be short-lived. Strong support is now in the ₹85-80 region which can limit the downside.
We expect the stock to reverse higher again and see a fresh rally anywhere from the ₹85-80 region. That leg of upmove can take Zomato share price to ₹115 initially. A further break above ₹115 will open the doors to revisit ₹140-150 levels again. You can consider buying more again at ₹86. Keep a stop-loss at ₹73. Revise the stop-loss up to ₹98 when the stock moves up to ₹109. Move the stop-loss further up to ₹120 when Zomato share price touches ₹128. Exit your positions at ₹135.
What is the outlook for the stock of Dr. Lal PathLabs? My buy price is ₹3,888.
CS Vasudev Chivukula
Dr. Lal PathLabs (₹2,240): The trend is down. Although the stock has been getting support around ₹1,800, there is no concrete sign of a reversal. In July, the stock had failed in its attempts to get a sustained break above ₹2,400 several times. Hence, chances for the stock of Dr. Lal PathLabs to see one more leg of fall from here are high. Immediate support is at ₹2,200.
A break below it can take the stock price down to ₹2,000 and ₹1,800 again. Resistance is in the ₹2,500-2,600 region. A strong rise past ₹2,600 is needed to indicate a trend reversal and turn the outlook bullish. But that looks less likely in the near future. So, it is better for you to exit the stock with a loss. You can reinvest the sale proceeds in some other stock that looks good on the charts. Zomato and DLF, explained in the previous queries, can be considered.
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