Is DLF a buy or Sell? Well, if you look at the Technical picture: it's avoid.
Here's why -
On Weekly Chart - DLF has formed a False Breakdown pattern which is not Bearish
As you can see in the chart above: DLF stock broke down below weekly support line of 124 but could not sustain below it and very quickly moved above it. This resulted in failure of Bearish pattern and many optimists would see 124 as new support for the stock. Bears do not like stocks where patterns fail on weekly chart.
The Daily Chart screams SELL
As you can see in the daily chart above: DLF stock has filled the gap and is right at 50 dma resistance - level from where weak stocks just sell off.
Considering the fundamental talk around the stock - it looks like an attractive sell around 140 with closing stop loss above 150. The stock has limited upside but will there be momentum on the downside is the big question right now. There is a saying: In Bull market, one should avoid shorting and that seems like a sensible thing in current environment.
DLF is avoid both fundamentally and technically.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers