Buy DLF Above 688 Target 850 ; CMP: 682

[K.Karthik Raja]

Buy DLF Above 688 Target 850 ; CMP: 682
DLF has been underperforming the broader market for quite a few
trading session. There had not been any recovery following the recent
announcement of its quarter earning which had been in-line
with the market expectations. The stock had been haunted by the
weakness prevailing in the Construction sector. However, the decline
has been on the back of lower volumes indicating limited downsides
from the current levels as the worst is already factored into the
price.
The stock is already trading below all the moving averages. The stock
is struggling hard to stabilize around the 800 levels. The 14-day RSI
has also bottomed out in the oversold territory and has triggered
a strong buy signal from the current levels. The recent bounces in the
stock are backed by increasing volumes suggesting value
buying at lower levels. Immediate resistance is placed at around 750
levels. A sustained move above that level will induce fresh buying
interest in the stock which might guide it to test higher levels
of 800 and 900 in a medium-term scenario. Investors are advised to
assume long positions in the stock in the range of 675-700 levels for
an upside target of 800 - 850 in a medium-term scenario.

All long positions in the stock should be protected with a stop loss
placed below 627 levels on a closing basis.

K.Karthik Raja
www.kences1.blogspot.com