Chart Reading: Nifty Realty climbs 2%; top stocks to watch out for

NIFTY REALTY INDEX: The index was trading 2.46 per cent higher at 241.60 levels in the intra-day trade on Monday. HDIL gained 10 per cent while Indiabulls Real Estate climbed 5.60 per cent. DLF and Godrej Properties soared around over 4.50 per cent each.

HDIL: The stock has formed 'Bullish channel pattern,' a continuation pattern that slopes up or down and trades within upper and lower trendline. The upper trendline is the resistance area whereas the lower trendline is the support area. The upward slope is considered as 'Bullish channel' and downward slope as 'Bearish channel'. At the current level of Rs 27.80, the stock is trading around its upper trendline; however, it crossed the 200-day moving average (DMA) located at Rs 26.35. A successful close above the trendline having the support of 200-DMA with MACD (moving average convergence and divergence) in positive crossover above zero line may lead to a breakout, chart suggests. 

Indiabulls Real Estate: The stock is in a consolidation phase in the range of Rs 68 - Rs 98 levels. In December, the stock witnessed two gap up close at Rs 78.55 and Rs 84.35 which has been held till date. The 100-DMA stays at Rs 102.80. A move beyond the said level may fuel stock to head towards 200-DMA, placed at Rs 139, the chart suggests.

DLF: The recent high of Rs 193.70 on 20th December, 2019 resisted the 200-DMA located at Rs193. On the downside, the stock has held the support of 50-DMA located at Rs 174 level. At the current level of Rs182.50, the stock is well placed above its 100-DMA, as per the daily chart. The technical indicator RSI (relative strength index) is in the process of positive crossover. The MACD is resilient to break below the zero line.

Godrej Properties: The stock has crossed the recent resistance high of Rs 715.25, when its 200-DMA was around Rs 702. The selling pressure at resistance level was severe which lead to a fall of 14 per cent to a low Rs 615.60.  At present, the stock has crossed the 200-DMA of Rs 690 and is in the verge of absorbing selling pressure, chart suggests. A strong follow-up buying may lead to upside levels of Rs 750 and Rs 790, as per the technical chart.