DLF - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:54 pm

Technical Rating: 2.7

📊 Technical Analysis

• Chart Patterns: Price (691 ₹) is below both 50 DMA (729 ₹) and 200 DMA (755 ₹), indicating a bearish trend.
• Moving Averages: Short-term and long-term averages are above current price, confirming weakness.
• RSI: 30.9 → oversold zone, suggesting potential for a technical bounce but trend remains weak.
• MACD: -16.1 → bearish crossover, showing continued downward pressure.
• Bollinger Bands: Price near lower band, indicating oversold conditions and possible short-term rebound.
• Volume Trends: Current volume (16.4 Lakh) is slightly above 1-week average (15.8 Lakh), showing active selling pressure.

📈 Momentum & Signals

• Short-term Momentum: Bearish bias with oversold RSI suggesting possible short-term bounce.
• Support Zones: 680 ₹ (near-term), 650 ₹ (strong support), 601 ₹ (52-week low).
• Resistance Zones: 729 ₹ (50 DMA), 755 ₹ (200 DMA), 800 ₹ (psychological resistance).
• Optimal Entry: 680–650 ₹ range if RSI remains oversold.
• Optimal Exit: 729–755 ₹ range unless breakout above 800 ₹.
• Trend Status: Stock is trending downward with oversold signals; possible consolidation near support levels.

✅ Positive

• Quarterly PAT surged to 818 Cr. from 40.3 Cr., showing strong recovery.
• Dividend yield at 0.88% provides shareholder returns.
• Low debt-to-equity ratio (0.05) indicates financial stability.

⚠️ Limitation

• Price trading below both 50 DMA and 200 DMA, showing weakness.
• High P/E (76.1) compared to industry PE (33.7), indicating stretched valuation.
• ROE (6.30%) and ROCE (8.34%) are modest, limiting efficiency.

📉 Company Negative News

• FII holdings decreased (-0.52%), showing reduced foreign investor confidence.
• Stock trading well below 52-week high (888 ₹), reflecting weak momentum.

📈 Company Positive News

• Quarterly PAT growth of 325% shows strong earnings momentum.
• DII holdings increased (+0.20%), balancing FII outflows.
• Dividend yield supports investor sentiment.

🏭 Industry

• Industry PE at 33.7, much lower than company PE (76.1), suggesting DLF trades at a premium.
• Real estate sector remains cyclical, with demand linked to interest rates and urban growth.

🔎 Conclusion

• Stock is in a downtrend with oversold RSI suggesting possible short-term bounce.
• Best entry near 680–650 ₹; exit near 729–755 ₹ unless breakout above 800 ₹.
• Long-term investors should monitor valuation risks and institutional flows before committing.