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DLF - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.4

Last Updated Time : 03 Feb 26, 05:12 pm

Technical Rating: 3.4

Stock Code DLF Market Cap 1,55,524 Cr. Current Price 628 ₹ High / Low 888 ₹
Stock P/E 57.0 Book Value 117 ₹ Dividend Yield 0.98 % ROCE 8.34 %
ROE 6.30 % Face Value 2.00 ₹ DMA 50 676 ₹ DMA 200 731 ₹
Chg in FII Hold -0.64 % Chg in DII Hold 0.57 % PAT Qtr 326 Cr. PAT Prev Qtr 818 Cr.
RSI 36.3 MACD -20.4 Volume 37,18,869 Avg Vol 1Wk 58,68,237
Low price 587 ₹ High price 888 ₹ PEG Ratio 8.50 Debt to equity 0.05
52w Index 13.8 % Qtr Profit Var 304 % EPS 11.7 ₹ Industry PE 30.2

📊 Technical Analysis

  • Chart Patterns: DLF is trading at 628 ₹, well below its high of 888 ₹, showing a clear downtrend with weak recovery attempts.
  • Moving Averages: Current price is below both 50 DMA (676 ₹) and 200 DMA (731 ₹), confirming bearish momentum.
  • RSI: At 36.3, the stock is approaching oversold territory, suggesting limited downside but weak strength.
  • MACD: Negative (-20.4), reinforcing bearish crossover and weak momentum.
  • Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.
  • Volume Trends: Current volume (37.18L) is lower than 1-week average (58.68L), showing reduced participation and lack of strong buying interest.

📈 Momentum & Signals

  • Short-Term Momentum: Weak, with potential for a relief rally if RSI-driven bounce occurs.
  • Support Zones: 587–600 ₹ (strong support), 550 ₹ (psychological support).
  • Resistance Zones: 676 ₹ (50 DMA), 700–720 ₹ (intermediate resistance), 731 ₹ (200 DMA).
  • Optimal Entry: Around 600–620 ₹ if support holds.
  • Optimal Exit: 670–700 ₹ range, unless breakout above 731 ₹ confirms reversal.
  • Trend Status: Currently trending downward with oversold signals; possible consolidation before reversal attempt.

✅ Positive

  • Large market cap (1,55,524 Cr.) ensures liquidity and stability.
  • Dividend yield of 0.98% provides income support.
  • Low debt-to-equity (0.05) ensures financial resilience.
  • DII holdings increased (+0.57%), showing domestic institutional support.

⚠️ Limitation

  • High P/E (57.0) compared to industry PE (30.2), suggesting overvaluation.
  • PEG ratio (8.50) indicates expensive growth prospects.
  • ROCE (8.34%) and ROE (6.30%) are modest, showing weak capital efficiency.
  • Trading below both 50 DMA and 200 DMA confirms weak technical structure.

📉 Company Negative News

  • FII holdings declined (-0.64%), showing reduced foreign investor confidence.
  • PAT dropped sharply from 818 Cr. to 326 Cr., reflecting earnings slowdown.

📈 Company Positive News

  • DII holdings increased (+0.57%), showing domestic support.
  • Quarterly profit variation (+304%) highlights strong rebound compared to prior periods despite lower PAT.
  • Dividend yield adds investor appeal.

🏭 Industry

  • Industry P/E is 30.2, lower than DLF’s 57.0, suggesting relative overvaluation.
  • Real estate sector remains cyclical, influenced by demand trends, interest rates, and policy support.

📝 Conclusion

  • DLF is fundamentally stable but technically weak in the short term.
  • Stock is oversold and may see a relief rally if support near 600 ₹ holds.
  • Best strategy: Accumulate cautiously near 600–620 ₹ with exit around 670–700 ₹ unless breakout above 731 ₹ confirms reversal.

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