De­wan Hous­ing Fi­nance Cor­po­ra­tion (₹647.9)

The Hindu Business Line - - MARKET WATCH - GURUMURTHY K

The out­look for the stock of De­wan Hous­ing Fi­nance Cor­po­ra­tion (DHFL) is bullish. The stock surged over 6 per cent on Mon­day de­ci­sively break­ing above a key re­sis­tance level of ₹610 with strong vol­ume. This con­firms a cup and han­dle pat­tern on the daily chart. It also in­di­cates the re­sump­tion of the over­all up­trend that has been in place since Novem­ber last year.

The level of ₹610 will now serve as a good sup­port and limit the down­side in the short term as dips to this sup­port may find fresh buy­ers. The up­move is likely to ex­tend and tar­get ₹700 in the com­ing days. Short-term traders with high risk ap­petite can go long at cur­rent lev­els.

The bullish out­look will get negated only if the stock breaks be­low ₹610. Such a break will in­crease the like­li­hood of the stock fall­ing to ₹570 lev­els there­after. But such a strong fall looks un­likely at the mo­ment.

(Note: The rec­om­men­da­tions are based on tech­ni­cal anal­y­sis. There is a risk of loss in trad­ing.)

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