Todays Pick

Dewan Housing Finance Corporation (₹603)

Gurumurthy K BL Research Bureau | Updated on January 10, 2018 Published on September 18, 2017

The outlook for the stock of Dewan Housing Finance Corporation (DHFL) is bullish. After moving in a sideways range for more than a week, the stock has risen sharply breaking above this range on Monday.

The stock opened with a gap-up and surged 6.2 per cent on Monday. This marks the resumption of the short-term uptrend that has been in place since the August low of ₹391.8. Key short-term supports are at ₹587 and ₹578. Dips to these levels may find fresh buyers coming into the stock. A rally to ₹630 is likely in the coming days. Further break above ₹630 will increase the likelihood of the stock extending its up move to ₹637 and ₹642.

Short-term traders can go long. Stop-loss can be placed at ₹585 for the target of ₹635. Revise the stop-loss higher to ₹615 as soon as the stock moves up to ₹620. The outlook for the stock will turn negative only if the stock declines below ₹578 decisively. But such a sharp fall looks unlikely at the moment.

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

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get

This article is closed for comments.
Please Email the Editor