DLF actions (₹ 631.70) find immediate support in ₹ 612 and ₹ 557. A closure below the latter will change the negative perspective and activate a strong drop in the stock.
On the other hand, the resistance levels are ₹ 686 and ₹ 760. A recovery above ₹ 686 will deny the current negative perspective for DLF. In general terms, we expect the stock to move in a narrow range with bias down.
F & O Pointers: On Friday, DLF May Futures closed to ₹ 633.20 compared to the spot price of ₹ 631.70. This contract witnessed a drop in open interest in the last ten when the action became volatile. This indicates the nervousness of merchants to carry out positions.
The options trade indicates that the action could move in the range of ₹ 600-700.
Strategy: Consider buying a 630 put that closed with a premium or ₹ 24.40 on Friday. As the market lot is 825 shares, this would cost the merchants ₹ 20,130 per lot. This would be the maximum loss that will happen if the DLF stock increases sharply.
Point to an objective or ₹ 32 while maintaining the initial stop-loss in ₹ 18. The stop-loss can be changed to ₹ 24 If the premium movements are adjusted to ₹ 26. Merchants can use the loss of STOP skillfully to protect the profits from there as DLF, being one of the highly volatile counters, they can change direction quickly, which can lead to a loss.
If the action opens strongly or higher on Monday, this trade can be avoided.
Follow up: Recommendation about Angel One would have supplier profits.
Note: Recommendations are based on technical analysis and F&P positions. There is a risk of loss in trade.
Posted on May 10, 2025
