DLF, Hindustan Aeronautics can bounce back, says Mehul Kothari; check why

According to the technical analyst from Anand Rathi, shares of Hindustan Aeronautics can bounce back to Rs 2,700, while DLF can jump to Rs 370.

BUY

Hindustan Aeronautics (HAL)

Buy Near: Rs 2,570

Target: Rs 2,700

Stop Loss: Rs 2,510 

Few sessions back; we witnessed a trend line breakout in Hindustan Aeronautics near Rs 2,520 mark. Then after the stock underwent a rally towards Rs 2,750 and post that it retraced back to the extension of that same trend line.

Now we are witnessing a bullish candlestick pattern on the daily scale which indicates resumption of the rally. Thus, we advise traders to go long in the stock near Rs 2,570 with a stop loss of Rs 2,510. 

BUY

DLF

Buy Near: Rs 350

Target: Rs 370

Stop Loss: Rs 340 

Since July 2022; DLF witnessed buying interest whenever it corrected near Rs 340 mark. At this juncture too it is trading near the multiple support zone of Rs 340.

The risk reward looks lucrative for short-term long trade since the stock might bounce towards its 200 DEMA placed near Rs 370. Thus, we advise traders to go long in the stock near Rs 350 with a stop loss of Rs 340. 

(Mehul Kothari - AVP – Technical Research, Anand Rathi Shares & Stock Brokers. Views are personal).