Dewan Housing Finance Corporation (₹430.5)

The stock of Dewan Housing Finance Corporation (DHFL) surged about 4 per cent with an above average volume on Monday. The stock’s recent up move has decisively breached the immediate resistance as well as the 21-DMA at around ₹420. This rally marks the end of its short-term corrective decline and indicates the resumption of the primary uptrend.

The stock has been on an intermediate-term uptrend since its November 2016 low at around ₹214. The corrective fall within this uptrend foundsupport at ₹390 in late May. The stock trades well above its 21 and 50-DMAs. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continue to feature in the bullish zone. Both the daily and weekly price rate of change indicators are hovering in the positive territory implying buying interest.

The short-term outlook is bullish for DHFL. The stock can continue its uptrend and reach the price targets of ₹448 and ₹458 in the upcoming trading sessions. Traders with a short-term perspective can buy the stock with a stop-loss at ₹421.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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