In the short-term the stock of DLF may move in a narrow range with downward bias. The stock finds the most important support level at ₹256 and a close below will alter the medium-term outlook as well. The stock finds an immediate support at ₹282. On the other hand, DLF finds an immediate resistance at ₹344 and then at ₹396.
Strategy: For conservative traders, we advise a bear-put spread strategy. This can be done by selling ₹300-strike put and simultaneously buying ₹315-strike put. These options closed with a premium of ₹15.8 and ₹8.8 respectively. That means, this strategy will cost ₹7/contract or ₹23,100 (lot size: 3,300 shares), which would be the maximum loss and that will happen if DLF stays above ₹315. On the other hand, there could be a profit ₹8/contract or ₹26,400 if DLF closes at or below ₹300.
We advise traders to exit the position if loss mounts to ₹8,500 or if profit stands at ₹15,000.
Traders, who can understand high risk involved, can consider going short on DLF futures. Stop-loss can be placed initially at ₹322. It can be shifted to ₹312 if the stock opens on weak note.Aim for a target of ₹298.