The Stock made an all time high of 1225 in 2008 January. Since then, it is trading below that level. In February 2009, it made an all time low of 124. From 124, it rallied to test a high of 490 in October 2009. Currently it is trading around 390.
Short term Technical outlook of DLF
Since May 2009, it is trading between 250 and 490. For the short term, the crucial level is 410. If it trades above this level, then it is likely to rally towards 460-470 levels towards February 2010 end. Instead, if it fails to sustain above 410, in coming trading sessions, then it is likely a see a correction from these levels towards 320 in another 20 to 30 trading sessions.
Long term View and forecast
After testing an all time low of 124, it retraced to test a high of 490. It retraced less than fifty percent of the fall. The fifty percent retracement level for this scrip lay at 674. The scrip couldn’t even reach this level, when Nifty retraced more than 70 percent of the fall. Some other sectors have retraced more than 100 percent. This shows that this scrip is technically weak in the long term.
Heavy volume is being witnessed in this counter which indicates that this stock is being owned by every investor which means this stock is now over invested. Failure to retrace above 50 percent retracement level is clear sign of weakness in the long term. If the present rally is termed as corrective rally, then in coming months it is likely to retest the 124 levels.
Unless this scrip crosses 500 in another three months, it is likely to see a correction towards 130 levels in coming months. Existing holders can hold this stock with a stop at 340. Below 340, exit this stock.
