DLF: Short-term view is positive

The medium-term uptrend will stay in place as long as the stock trades above ₹215

Here are answers to readers’ queries on the performance of their stock holdings.

What is the technical outlook for DLF and Bharti Infratel, over the next three to six months? Can I invest?

R T Rajasekaran

DLF (₹228.9): Following a medium-term uptrend from the late September 2017 low of ₹158, the stock encountered a key resistance at ₹273 in early January this year.

The stock subsequently changed direction, triggered by negative divergence in the daily indicators. Since then, it has been in a short-term downtrend. However, retracing 50 per cent fibonacci retracement level of the prior uptrend, the stock found support at ₹215 last week. It was buoyant and advanced 2.6 per cent in the previous week, while the broader markets tanked.

The medium-term uptrend will be in place as long as the stock trades above ₹215. Investors with a high-risk profile and medium-term perspective can consider buying the stock with a stop-loss at ₹205.

 

 

 

A strong rally above the immediate resistance level of ₹245 can take the stock higher to ₹265 and ₹275 levels. To further strengthen the medium-term uptrend, the stock needs to emphatically move beyond ₹275 levels. Next key resistances are at ₹300 and ₹330 levels.

On the other hand, a plunge below the current base level can pull the stock down to ₹200. Further slump below ₹200 will alter the medium-term uptrend and drag it lower to ₹180 or even to ₹160 levels in the medium term.

Bharti Infratel (₹341.3): After a medium-term downtrend, the stock found support at ₹340 in mid-January.

This significant long-term support of the stock has been cushioning it over the past three weeks. The daily indicators are showing positive signs of trend reversal. Investors with a long-term perspective can buy the stock with a stop-loss at ₹320. An upward reversal from the current base level can take the stock higher to ₹370 and ₹400 in the medium term.

 

 

 

Further break above ₹400 can take the stock to ₹440 and ₹480 levels in the long run.

Any blip below the current support can find support at ₹320 or ₹300. But further decline below ₹300 will strengthen the downtrend and drag the stock to ₹275 and ₹250 levels.

Send your queries to techtrail@thehindu.co.in

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