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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.
Send your questions to techtrail@thehindu.co.in
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