The stock price hit a 52-week high of Rs 419 on 17 April 2023. It moved in a narrow range of 20-30 points since January 2023 on the weekly charts.
On the higher side, DLF stock price found resistance around Rs 370 while on the downside support was seen at Rs 330-340 levels on the weekly charts. The stock finally broke out from the range earlier in April 2023.
Most technical indicators suggest that the upside is likely to remain intact; however, the stock is trading near an overbought zone, hence, mild profit booking could be on the cards.
The stock has risen more than 8% in a week and over 20% in a month. In terms of price action, the stock is trading well above most of the crucial short and long-term moving averages of 5,10,20,30,50,100, and 200-DMA on daily charts.
The Relative Strength Index (RSI) is at 75.4. RSI above 70 is considered overbought. This implies that stock may show pullback, Trendlyne data showed. MACD is above its center and signal line, a bullish indicator.
DLF’s stock has demonstrated remarkable resilience, consistently maintaining a level above Rs 286 since early June 2021, which is a threshold that had not been breached since March 2013.
“DLF stock price sustained performance is indicative of significant strength. Additionally, the recent breakout from the Rectangle pattern confirms the continuation of the prior uptrend,” Omkar Patil, Technical Research Associate at GEPL Capital, said.
“The Golden Crossover between the 50-day and 200-day EMA on the daily timeframe further supports the upward trend,” he said.
“Furthermore, the RSI on the Weekly timeframe has shown a breakout, reflecting positive momentum,” highlighted Patil. “It is anticipated that the prices will likely continue to move higher, with a target of Rs 470, and a recommended stop loss set at Rs 395 on a closing basis,” recommended Patil.
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