Technical Analysis – DLF – Consider Shorting DLF
DLF (Rs 329.7): Despite the recent uptrend, the stock seems to have lost its momentum a bit, turning weak on Friday. We expect the stock to move in a narrow range with a negative bias. As long as it stays below Rs 405, the outlook for the stock remains negative. It currently faces an immediate resistance at Rs 340 and has a support at Rs 282. Only a break from this range could set a clear trend for the stock.
F&O pointers: DLF futures (market lot 800) added open interest on Friday. This presents a negative view, as it indicates creation of fresh short positions. Besides, accumulation in calls at strikes 340 and 320 indicates emergence of call writers. Put options shed open interest signalling covering activity by writers.
Strategy: Consider shorting DLF, with a stop-loss at Rs 340 for an initial target of Rs 320 and then Rs 292. Adjust the stop-loss progressively.
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