Real estate major DLF was the biggest gainer on the BSE100 index, rising more than 4 percent with significantly higher volumes on March 17.
The stock saw a strong gap-up opening and remained in an uptrend, forming a strong bullish candlestick pattern on the daily charts for a second consecutive session despite volatility in the broader markets.
DLF had a higher highs, higher lows formation for the third straight session. It saw a decisive breakout from the upward threshold of the channel formed since January, which can increase the possibility of a further upside.
Hence, the stock has the potential to surpass the Rs 400 mark in the short term, followed by the high of December 2022, which is around Rs 420.
DLF shares closed at Rs 375.25 on the NSE, up 4.2 percent over the previous day, taking their total gains to over 11 percent from the March 14 lows.
"DLF saw a corrective retracement after forming a double-top resistance in the Rs 412-418 range. The corrective move that followed saw the stock slipping below the 50-, 100-, and 200-DMA. After taking support in that zone multiple times, the stock has tried to put a potential bottom in place by rebounding from the Rs 345-350 level," said Foram Chheda, Technical Research Analyst and Founder of ChartAnalytics.co.in.
Currently, after crossing the 50-, and 200-DMA, she feels the stock is testing the 100-DMA, which is currently at Rs 376.25.
"Any meaningful move above Rs 378 can propel the stock higher, towards Rs 390-395 levels. The most immediate support for DLF exists in the Rs 360-367 zone," said Chheda.
Investors can consider entering the stock above the Rs 380 level, she added.
On the daily timeframe, the stock climbed back above all key moving averages (5-, 21-, 50-, 100- and 200-day exponential moving average), with a slight expansion in the Bollinger band. On the weekly, as well as monthly scales, there was a Bullish Engulfing kind of pattern, which is another positive sign for the stock.
The stock of DLF has shown a significant upward trend recently, rising from a key support level of Rs 340. "The shift in price polarity is noticeable, and a positive sentiment can be seen in the form of a gap in the recent upswing.
The price movements have caused the Bollinger band to expand, indicating a surge in volatility," Vidnyan Sawant, AVP - Technical Research, GEPL Capital said.
With this momentum, he feels it's likely that the stock will continue to climb and potentially reach Rs 400 and Rs 420 levels, with Rs 355 serving as a robust support level.
The country's largest listed real estate company witnessed a record-breaking pre-formal launch sales of over Rs 8,000 crore for its luxury high-rise residences, The Arbour, in Gurugram.
"The Arbour, that marks DLF's entry into the micro market at Golf Course Extension has been fully sold out within three days even before its launch, wherein the flat prices starting from Rs 7 crore onward, per unit," DLF said in its filing to exchanges on March 16.
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