Realty boom! DLF, Godrej Properties can surge up to 15%, charts indicate

The Nifty Realty Index can soar up to 15% on hopes of a strong demand for housing this festive season

Shares of real estate companies have been on a roll off late with expectations soaring high of a strong demand this festive season. To add the festive mood, several lenders have already announced a rate cut on home loans. 

A survey by JLL–RoofandFloor said over 80 per cent of prospective buyers are likely to make a purchase within the next three months. Analysts believe that Tier 1 developers will gain market share, given consumers’ buying preference for reputed developers in under construction projects. READ MORE

After having posted the biggest single-day gain in over 4 years, and now hovering at a 11-year high, how much more higher can the Nifty Realty index soar? And, what kind of upside can the prominent stocks deliver? Here, what the charts reveal.
 

NIFTY REALTY INDEX
Likely target:  550
Upside potential: 15%

The Nifty Realty Index crossed the major resistance of 360 in the July 2021, according to the monthly chart. This breakout witnessed a selling pressure in the range of 425 to 400 levels, now as the index manages to conquer this hurdle; the medium-term outlook shows a bullish scenario towards 550 levels. The immediate support stays at 440 mark. The Relative Strength Index (RSI) is exhibiting a positive strength in the overbought category suggesting a firm upward trend.  CLICK HERE FOR THE CHART
 
DLF Ltd (DLF)
Likely target:  Rs 420 and Rs 450
Upside potential:  8% to 15%

The shares of DLF have conquered the resistance at Rs 350-Rs 360 reflecting a positive bias ahead. The breakout was supported by strong volumes, which were higher than the daily volume of the last six months. Going forward, as long as the stock trades above Rs 360, the bullish bias is likely to lead the stock towards Rs 420 and Rs 450 levels.  CLICK HERE FOR THE CHART
 
Godrej Properties Ltd (GODREJPROP)
Upside potential:  Rs 2,200 and Rs 2,300
Likely target:  7% to 12%

The shares of Godrej Properties hit a new all-time crossing Rs 2,000 mark on Thursday showing a firm bullish sentiment. This up move is the breakout of conquering Rs 1,700-level, which was a strong resistance. The overall trend shows a rally towards Rs 2,200 and Rs 2,300 levels, according to the daily and weekly charts. The support stays at Rs 1,800-level and as long as the volumes support the upward bias, the stock is expected to see bullish momentum on corrective levels.  CLICK HERE FOR THE CHART
 
Brigade Enterprises Limited (BRIGADE)
Upside potential:  Rs 460 and Rs 480 (after crossing Rs 425)
Likely target:  8% to 12%

Brigade Enterprises has to absorb the selling pressure emerging in the range of Rs 425 to Rs 400. Once this hurdle range gets conquered, the upside breakout may see the stock rally to Rs 460 and Rs 480 immediately with market participants eagerly jumping to have share of it, as per the daily chart. The closing basis support stays at Rs 400-level. CLICK HERE FOR THE CHART
 
 
Indiabulls Real Estate (IBREALEST)
Upside potential:  Rs 162
Likely target:  8%

The trendline breakout supported by decent volume indicates an upside towards Rs 162, which is the next resistance mark. The RSI needs to pass the 60 value to see a strong up move, as per the daily chart. The next resistance will be at Rs 170. The medium-term support is located at Rs 124, which is its 100-day moving average (DMA) and the immediate support stays at Rs 139. CLICK HERE FOR THE CHART