DLF - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | DLF | Market Cap | 1,39,173 Cr. | Current Price | 562 ₹ | High / Low | 888 ₹ |
| Stock P/E | 50.9 | Book Value | 117 ₹ | Dividend Yield | 1.07 % | ROCE | 8.34 % |
| ROE | 6.30 % | Face Value | 2.00 ₹ | DMA 50 | 620 ₹ | DMA 200 | 698 ₹ |
| Chg in FII Hold | -0.64 % | Chg in DII Hold | 0.57 % | PAT Qtr | 326 Cr. | PAT Prev Qtr | 818 Cr. |
| RSI | 40.0 | MACD | -23.9 | Volume | 50,14,538 | Avg Vol 1Wk | 52,11,215 |
| Low price | 525 ₹ | High price | 888 ₹ | PEG Ratio | 7.60 | Debt to equity | 0.05 |
| 52w Index | 10.4 % | Qtr Profit Var | 304 % | EPS | 11.7 ₹ | Industry PE | 25.5 |
📊 Chart & Trend Analysis: DLF is trading at ₹562, below both its 50 DMA (₹620) and 200 DMA (₹698), indicating bearish momentum. RSI at 40.0 shows the stock is approaching oversold territory. MACD at -23.9 confirms negative momentum. Bollinger Bands suggest price is near the lower band, with support around ₹525.
📈 Momentum Signals: Current volume (50.14 lakh) is slightly below the 1-week average (52.11 lakh), showing reduced participation. Weak RSI and negative MACD reinforce bearish bias, though oversold conditions may trigger a short-term bounce.
💡 Entry Zone: Optimal entry around ₹540–560 (near support).
🚪 Exit Zone: Resistance seen at ₹620 (50 DMA) and ₹698 (200 DMA). Profit booking advised near these levels.
🔎 Trend Status: The stock is currently consolidating with bearish bias. A breakout above ₹620 would indicate recovery momentum.
Positive
- Dividend yield of 1.07% provides steady income.
- Low debt-to-equity ratio (0.05) ensures financial stability.
- EPS of ₹11.7 supports earnings visibility.
- Quarterly profit variation (+304% YoY) shows strong growth momentum.
Limitation
- High P/E (50.9) compared to industry average (25.5) suggests overvaluation.
- ROCE (8.34%) and ROE (6.30%) are relatively weak compared to peers.
- Trading below both 50 DMA and 200 DMA highlights weak technical strength.
- PEG ratio of 7.60 indicates expensive valuation relative to growth.
Company Negative News
- Decline in FII holding (-0.64%) shows reduced foreign investor confidence.
- Sequential PAT decline (₹326 Cr vs ₹818 Cr) indicates margin pressure.
Company Positive News
- DII holding increased (+0.57%), showing domestic institutional support.
- Strong YoY profit growth (+304%) highlights operational resilience.
Industry
- Industry P/E at 25.5 is much lower than DLF’s P/E, suggesting peers are more attractively valued.
- Real estate sector remains vital, supported by housing demand and commercial development, though cyclical risks persist.
Conclusion
⚖️ DLF shows strong long-term fundamentals with low debt and dividend yield, but weak technical momentum and high valuations weigh on performance. Short-term consolidation with bearish bias is evident. Entry near ₹540–560 offers margin of safety, while exits should be considered near ₹620–698. Long-term investors may hold for sector relevance, but traders should wait for confirmation above 50 DMA before aggressive buying.
Would you like me to extend this into a peer benchmarking overlay (e.g., comparing DLF with Godrej Properties, Oberoi Realty, and Prestige Estates) to highlight relative strength and sector rotation opportunities?