Tuesday, February 24, 2009

Stock Recommendation DLF Sell

Target price: Rs 124 

Goldman Sachs has maintained its ‘sell’ rating on DLF while reiterating its cautious outlook on the real estate sector. According to the investmentbank, New Delhi-based realty major’s third-quarter results have confirmed a significant slowdown in property sales and construction activity in India. 

“We push back our medium-term development pipeline projections and lower our property price assumptions,” Goldman Sachs said in a report. The investment bank has lowered its earnings per share (EPS) estimates for FY2009-FY2011 by 29-62% and cut its 12-month target price to Rs 124 from Rs 203.

Our Analysis :

The following are the key levels to watch out for DLF

Support 1 Rs.147
Support 2 Rs. 138

Resistance 1 - 163
Resistance 2 - 180

Best is to try buy for short term at support levels and short sell at or near the resistance levels