DLF Share Price Surges to All-Time High After Breaking Out of Resistance Zone; Analysts See Further Upside Potential

Dhaneshwar Prasad

DLF Share Price Surges to All-Time High After Breaking Out of Resistance Zone; Analysts See Further Upside Potential

The share price of India’s leading real estate developer DLF has been on an uptrend in recent weeks, surging to record lifetime highs after breaking out of a key resistance zone. Analysts have turned bullish on the stock and have set aggressive price targets based on positive technical indicators.

DLF’s Share Price Momentum Accelerates After Breaching Resistance

DLF’s share price has climbed over 13% in the past one month, outperforming benchmark indices. More significantly, the stock has gained over 8% just in the past five trading sessions.

This momentum picked up pace after DLF’s share price managed to breach a strong resistance zone between ₹705-710 late last week. This level had acted as a roadblock for the stock multiple times in 2022. However, a successful breakout above this zone propelled the stock higher to hit a record high of ₹731 on Tuesday.

DLF ended trading on Friday at ₹715.95, not far from its lifetime peak. The breakout and new highs indicate strong bullish sentiment and increased buying interest after the resistance zone was taken out.

Key Technical Indicators Reflect Underlying Strength

Along with the price breakout, technical indicators reflect strength in the stock that supports the bullish view.

DLF is currently trading above its short-term 20-day exponential moving average (EMA), medium 50-day EMA as well as the long-term 200-day EMA. The moving average acted as support levels, underlining sustained positive momentum.

The relative strength index (RSI), a momentum indicator, has also bounced sharply from below 70 levels to hit extremely overbought territory at 72 levels. The sharp uptick indicates strong existing upside energy.

Overall, DLF’s technical setup remains highly favorable for further gains after the recent strong breakout.

Analysts Set Aggressive 12-Month Target Price of ₹765

In light of the positive technical outlook as well as DLF’s industry leadership position and strong financial performance, analysts have turned optimistic on its prospects.

Brokerage house Ask Traders has initiated coverage on DLF shares with a bullish view, given its market dominance, record sales bookings, and debt reduction efforts.

It has set an aggressive 12-month target price of ₹765, which translates into nearly 7% upside from current levels.

The target price suggests confidence that DLF’s share price carries the momentum to not only hold on to its gains but build on them going forward.

Ask Traders sees limited downside risk, with stop-loss pegged at ₹672 which aligns closely with its 20-day EMA support.

Bottom Line – Robust Technical Breakout Sets Stage for Continuation

In conclusion, DLF shares have seen strong momentum build up that has only accelerated after breaking out of key resistance.

With its technicals looking robust and supportive of the emerging trend, analysts foresee this upside momentum to potentially last over the next 12 months.

However, trading volatility cannot be ruled out after the sharp surge. Maintaining appropriate risk management measures is prudent even as overall signs remain positive.

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Former Sony professional turned multi-business owner and stock investor, Dhaneshwar leverages his MBA to produce market, IPO and biz content and personal investments on Indimarket.in.
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