Focus on these 2 realty stocks amid correction; charts hint upto 23% upside

Technical analysis shows that DLF and Sobha are relatively better-placed on charts compared to other realty stocks; here are the key levels to track on these 2 shares.

Following a strong sell-off on Monday, shares of real-estate (realty) companies were seen trading on a mixed note in Tuesday's trading session.  The Nifty Realty index was up 1.7 per cent at 927 levels; while the NSE benchmark held a marginal gain of 15-odd points at 24,697 levels.  Among individual realty stocks - Lodha (Macrotech Developers), DLF, Godrej Properties, Oberoi Realty and Prestige Estates rallied in the range of 1 - 3 per cent each; while Mahindra Lifespace, Raymond and Sobha declined around 1 - 2 per cent each.  CATCH STOCK MARKET UPDATES TODAY LIVE  Based on the existing technical chart patterns, here are 2 realty stocks that look relatively stronger on charts, and may rally up to 25 per cent from here. 

How to trade DLF, Sobha shares amid stock market correction.

DLF

Current Price: ₹800  Likely Target: ₹915  Upside Potential: 14.4%  Support: ₹775; ₹725; ₹675  Resistance: ₹815; ₹845; ₹885  DLF stock has been consolidating following a sharp 43 per cent rally from levels of ₹589 on May 9 to a high of ₹845 on June 9. The anticipated trading range has now narrowed down to ₹779 - ₹814 levels. 

 

  The daily chart shows that the near-term bias for DLF is likely to remain favourable as long as the stock trades above ₹775 levels. Break of the same can trigger a fall towards ₹725 - ₹675 levels, shows the medium-term chart.  On the upside, break and sustained trade above the higher-end of the Bollinger Bands (₹814) can help the stock regain its upward momentum. The stock can potentially surge to ₹915 levels in the coming period. Intermediate resistance for the stock can be anticipated around ₹845 and ₹885 levels.  ALSO READ | Lodha Developers share price rises 4% post Q1; is it right time to buy? 

Sobha

Current Price: ₹1,580  Likely Target: ₹1,950  Upside Potential: 23.4%  Support: ₹1,545; ₹1,460  Resistance: ₹1,700; ₹1,750; ₹1,860  Sobha stock at present is seen seeking support at its 20-Day Moving Average, which stands at ₹1,580. Technical chart shows presence of key near-term support at ₹1,545 levels, and far-off support at ₹1,460 levels.  As long as the stock sustains above these support levels, it can potentially aim to rally towards ₹1,950 levels, shows the long-term chart. Intermediate resistance for the stock can be expected around ₹1,700, ₹1,750 and ₹1,860 levels.