DLF has support at Rs 580-590: Mathew

Technical Analyst, E Mathew is of the view that DLF has support at Rs 580-590.

Mathew told CNBC-TV18, "In my opinion this massive fall of DLF all the way from roughly Rs 1200 down to almost a Rs 598 zone has factored in all the negatives and if we are looking at a long term growth story of the country as such at a GDP growth of 8% plus, I fail to understand how the real estate sector of whatever may be the reservations of the section of the market, how the real estate will not participate. Technically it has got an excellent support now, between Rs 580 and Rs 590, so if one is technically inclined, one could keep a stoploss there but honestly the stock has been ravaged so badly, keeping a stop loss at Rs 580 also doesn’t make sense."

He further added, "On the up side it is going to face a lot of resistance, we have got multiple resistances between Rs 680 and Rs 720. There are so many resistances at this point, the big move or the sign that this stock has really bottomed out would come if and only if the stock is able to convincingly sustain above Rs 680 to Rs 720. Otherwise possibly the stock would be stuck in this consolidation range for quite sometime. But selling out at the current level, I don’t think it is a very wise decision."