DLF, Oberoi Realty: Strategy for realty stks as Maharashtra halves premiums

The Maharashtra government has slashed premiums and levies charged on construction by 50 per cent, till December 31

Shares of real estate companies were in focus at the bourses on Thursday, surging up to 7 per cent on the BSE after the Maharashtra government slashed premiums and levies charged on construction by 50 per cent till December 31 2021.

The cut, under the Development Control and Promotion Regulation 2034, will apply to both ongoing and new projects. Municipalities charge this premium on floor space index (FSI). The move is expected to give a boost to the real estate sector in the state. READ MORE

Following the development, the S&P BSE realty index hit 52-week high of 2,607 in the intra-day trade today. Among individual stocks, shares of Sobha, Indiabulls Real Estate, Sunteck Realty, Oberoi Realty and Godrej Properties rallied between 5 per cent and 7 per cent on the BSE in the intra-day trade. 

Meanwhile, Mumbai and Pune markets led the revival with both sales as well as new launches recovering significantly in the second half (July-December) of the year calendar year 2020, a Knight Frank India report on India Real Estate: H2 2020 said. READ MORE

Here's how some realty stocks look on charts

NIFTY REALTY INDEX: The index is nearing the 52-week high of 336.35 levels, with a gap-up opening registered on January 7, 2020. A sharp upside above this high may induce fresh buying, resulting in a rally towards Rs 350 levels, as per the weekly chart. The medium-term trend shows optimism till the index manages to trade above 305 levels. The Relative Strength Index (RSI) is not witnessing any major sell-off rather, with, in fact, the price strength suggesting further upside. CLICK HERE FOR THE CHART

DLF Ltd (DLF): The index is nearing the 52-week high of 336.35 levels, with a gap-up opening registered on January 7, 2020. A sharp upside above this high may induce fresh buying, resulting in a rally towards Rs 350 levels, as per the weekly chart. The medium-term trend shows optimism till the index manages to trade above 305 levels. The Relative Strength Index (RSI) is not witnessing any major sell-off rather, with, in fact, the price strength suggesting further upside. CLICK HERE FOR THE CHART

Oberoi Realty Ltd (OBEROIRLTY): The stock needs to show stability and sustainability above Rs 605 levels. If that happens, then it can rally towards initial resistance of Rs 640 levels and thereafter towards Rs 660 levels. The positive bias is intact till the counter manages to hold Rs 560 level, as per the daily chart. CLICK HERE FOR THE CHART

Godrej Properties Ltd (GODREJPROP): After hitting a fresh all-time high of Rs 1,527.90 levels, the counter is not showing any weakness on the RSI indicator. Every upside in the overbought category is advancing with a firm buying momentum. The immediate closing basis support stays at Rs 1,380 levels, as per the daily chart. The overall bullish sentiment is suggesting a rally towards Rs 1,700 levels from the medium-term scale. CLICK HERE FOR THE CHART

Sunteck Realty Limited (SUNTECK): The stock of the Mumbai-based realty firm is making efforts to sustain above the 200-weekly moving average (WMA), currently placed at Rs 343 levels. The bigger breakout is above the resistance of Rs 400 levels, which the counter is headed towards. The upside bias is intact, till the closing basis support of Rs 340 is held decisively. CLICK HERE FOR THE CHART

Indiabulls Real Estate (IBREALEST): After crossing the major resistance area of Rs 75 to Rs 78 levels, the Indiabulls Group firm's stock is set to rise further towards Rs 96 levels, as per the weekly chart. This move has a closing basis support at Rs 78 levels. The “higher high, Higher Low” formation is witnessing a firm buying momentum with every corrective move being seen as buying opportunity. The overall trend is heading towards Rs 105 levels. CLICK HERE FOR THE CHART