DLF, Oberoi Realty zoom up to 70% so far in 2023; will the rally last?

Charts suggest that the bias for the realty stocks is likely to remain favourable as long as they hold these key support levels.

The Realty index has been a strong outperformer so far this calendar year on the back of strong housing demand, and call for work-from-office. The recent pause in rate hikes by the RBI and expectations of downturn in rate cycle in 2024 has also aided the sentiment.

The NSE Nifty Realty index is trading at a life-time high, and has soared 49 per cent so far this year. Among individual stocks, Prestige Estates (71 per cent), DLF (60 per cent), Lodha (50 per cent), Oberoi Realty (43 per cent) and Phoenix (41 per cent) were some of the major movers. Meanwhile, the NSE Nifty50 has gained around 7 per cent. 

Going ahead, here's how these stocks are placed on the charts.

Nifty Realty

Current Price: 650

Support: 643; 625

The Nifty Realty index is on a 3-month winning streak, and further has managed to sustain above the higher-end of the Bollinger Bands on the monthly chart for the sixth straight month. The monthly chart suggests that the bias is likely to remain favourable as long as the index holds above 625 levels. 

However, the weekly chart is signaling early signs of caution. While, the price action seems positive on the weekly scale, technical indicators are showing a divergence. For instance, even as the Nifty Realty index hit a new high, the RSI and the Stochastic Slow have drifted sideways to marginally lower, indicating indecisiveness among trades at higher levels.

The weekly chart suggests, failure to sustain above 643-level, can trigger a corrective move towards 625 or even lower towards 605-odd level. CLICK HERE FOR THE CHART

Prestige Estates

Current Price: Rs 790

Support: Rs 765

The stock has rallied over 32 per cent in the last six straight weeks. The near-term bias is likely to remain bullish as long as the stock sustains above Rs 765, indicates the weekly chart.

On the upside, the stock may re-test its recent high of Rs 820, and thereafter some consolidation seems likely as key momentum oscillators are in overbought zone. On the downside, the 20-DMA (Daily Moving Average) at Rs 741 and the 50-DMA at Rs 668 are likely to provide strong support. CLICK HERE FOR THE CHART

DLF

Current Price: Rs 599

Support: Rs 594; Rs 588

The stock is presently testing resistance at the higher-end of the Bollinger Bands on the daily chart at Rs 600. On the downside, near support for the stock is seen at Rs 594 and Rs 588, respectively. As long as these levels are held the stock is likely to trade with a positive bias.

Failure to hold on the support levels could trigger an intermediate correction towards Rs 535-odd levels. CLICK HERE FOR THE CHART

Macro Developers (Lodha)

Current Price: Rs 871

Support: Rs 840

The stock looks fairly positive on multiple-time frames, with price action and technical indicators in sync of a favourable movement. Currently, the stock is trading above the higher-end of the Bollinger Bands on the daily chart at Rs 870 and quotes at record high levels. 

The overall trend is likely to remain bullish as long as the stock trades above Rs 840 levels. CLICK HERE FOR THE CHART

Oberoi Realty

Current Price: Rs 1,238

Support: Rs 1,227

The stock has rallied over 16 per cent in the last seven trading sessions, with select momentum oscillators’ now entering overbought zone. The stock has immediate support at Rs 1,227, and as long as the stock trades above the same, it is likely to maintain the bullish bias.

However, failure to sustain above Rs 1,228 can trigger consolidation and the stock may test its 20-DMA on the downside, which indicates a possible target of Rs 1,140. CLICK HERE FOR THE CHART