Buy DLF on declines, it has an edge over other realty stocks: Rajat Bose

In an interview with ET Now, Rajat Bose, rajatkbose.com talks about DLF.

What is the call on DLF?

DLF was one of the few stocks that actually closed above its 200-day exponential moving average yesterday and it is showing a kind of momentum. If you leave aside today’s weakness, it is showing a kind of momentum that is very heartening for the real estate sector and anybody judging the stock from a pure technical point of view would tell you that it is actually a buy on declines.

I am not expecting DLF to fall below 220-217 major support area. So since a stock has already tested the 200-day exponential moving average and posted a close above that, if it were to come down for any reasons and does not fall below the immediate support area, that becomes a good buy. This is purely from a technical point of view.

I heard that the major bull said that you should avoid real estate stocks but technicals are not corroborating with that view as far as DLF is concerned. Other stocks are looking somewhat better but DLF definitely is cut above the rest in the real estate pack. So I would after a long time rate it as a buy on declines.