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Dewan Housing Technical Analysis #58: Sell | Target Rs 65 | Arijit Banerjee

OUR RECOMMENDATION

CMP#570
IdeaSELL
Sell Range590 – 570
Target480 – 450
StopLoss*600
Duration12 – 15 Trading Sessions
Potential Return^10 – 12%
CMP#IdeaSell RangeTargetStopLoss*DurationPotential Return^
83.3SELL91 – 8565 – 601024 – 6 Weeks22 – 28%

# CMP on June 07, 2019
* Maintain recommended StopLoss by daily closing basis.
   Once 1st target hit, reset StopLoss at 74.
^ The returns are calculated based on CMP#

COMPANY OVERVIEW

Dewan Housing focuses on providing financing products to the lower and middle-income segments in India and offers home loans, land loans, home renovation loans, construction loans to self employed, salaried professionals and entrepreneurs. The company also provides non-hosing loans, business loans, plant and machinery loans, property term loans etc.

Stock Data
NSE CodeDHFL
Sectoral IndexNifty Financial Services
52W High691.5
52W Low80.1
Face Value10
Relative Performance_Dewan Hosing Finance vs Nifty Financial Services

TECHNICAL OBSERVATIONS (MONTHLY & WEEKLY)

  • Looking at the monthly chart, the stock has seen a spectacular rally from December 2002 to September 2018.
  • After a fresh all-time high of around 691.5 (September 2018), the stock price has slipped into sharp declines and moved below the upward sloping support line.
  • The weekly chart indicates that after a 17 weeks consolidation stock has given the downside breakout of the trend line indicates further negative sign.
Dewan Housing Monthly & Weekly
Dewan Housing Monthly & Weekly

TECHNICAL OBSERVATIONS (DAILY)

  • The strong downside move during the previous two days has resulted in a decisive breakout from the symmetrical triangle pattern.
  • The breakout is associated with Gapping down implying Strong breakout.
  • The momentum oscillator RSI is also moving downwards in the daily chart and thus showing negative strength.
Dewan Housing Daily Chart
Dewan Housing Daily Chart

MONEY MANAGEMENT AND TRADING RULES

1)  It’s advisable not to enter/exit beyond the recommended range.
2)  Strictly follow the StopLoss as mentioned. Honour it.
3)  Use trailing StopLoss to retain profits.
4)  Diversify trading capital into our other technical recommendations.
5)  Risk only the money what you can afford to lose. Hedge accordingly.

ANALYST SUMMARY

This research analysis is prepared by Arijit Banerjee, CMT, CFTe. An engineering graduate developed an early interest in Trading since the age of 20. He is a Chartered Market Technician (CMT) accredited by CMT Association USA, the leading global authority of Technical Analysis and also has been honoured by Certified Financial Technician (CFTe) from the International Federation of Technical Analysts (IFTA), USA. His contribution to the market research was recognized by SEBI, the Regulatory Body of Indian financial market and given him the registration number INH300006582 as a Research Analyst. Over the years, he has gained experience in Technical Analysis with a demonstrated history of working in different asset classes. Himself as a trader, he has trained and continues training novice and experienced traders to become successful, confident and profitable in the financial market.

Disclosure

The views expressed herein are based solely on information available publicly/internal data/other sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to accuracy. The recommendations provided herein is solely for informational purposes and are not intended to be and must not be taken alone as the basis for an investment/trading decision. Trading and investing are subject to market risk and the securities discussed and opinions expressed herein may not be suitable for all investors. To read the full disclosure, please click here.

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