A breakout above ₹860 could trigger a rally towards the ₹1,000–₹1,100 range in the medium term, the analyst said.

DLF shares rose in morning trade before paring gains due to broader market weakness on Friday, following the real estate major's announcement of the complete sellout of the first phase of its residential project in Mumbai. 

DLF’s re-entry into the Mumbai market via The Westpark in Andheri marks a strategic shift, according to SEBI-registered analyst Pradeep Carpenter. The ₹2,300 crore project, built under a capital-light JV model, targets the high-end segment and is already seeing strong interest.

Looking ahead, projects like Privana North and The Westpark are expected to contribute over ₹13,000 crore in sales. A stable macroeconomic backdrop and potential interest rate cuts could further act as catalysts for growth.

While DLF stock appears to be currently rangebound, its latest strategic expansions could propel the stock to a rally.

On the technical chart, DLF shares have been trading in a tight range between ₹820 and ₹860. The ₹860 mark acts as a strong resistance, aligning with the upper trendline of its current channel, the analyst said.

A breakout above ₹860, especially with high volume, could trigger a bullish continuation toward ₹900-₹930, and potentially ₹1,000–₹1,100 in the medium term, representing a potential upside of 28%.

Momentum indicators are starting to support this view, Carpenter noted. Moving average convergence/divergence (MACD) has just crossed above the zero line, signaling early bullish momentum, while the relative strength index (RSI) remains neutral around 50. A move above 60 would confirm bullish bias.

The average directional index (ADX) is gradually rising, suggesting trend formation is underway, the analyst said. However, failure to breach ₹860 could see the stock pull back to support levels at ₹821 or even ₹798.

Fundamentally, DLF remains rock solid. In Q4 FY25, net profit rose 39% to ₹1,282 crore, driven by strong sales in Gurugram and healthy commercial leasing income. With a debt-to-equity ratio of less than 0.10 and a history of consistent dividends, the company’s financial health is robust.

Data on Stocktwits shows that retail sentiment has shifted to ‘bearish’ from ‘neutral’.

DLF's Sentiment Meter and Message Volumes at 01:10 p.m IST on July 25 | Source: Stocktwits

DLF shares were down marginally at ₹828, having gained 0.44% year-to-date (YTD).

For updates and corrections, email newsroom[at]stocktwits[dot]com<