These realty stocks can rally up to 12% once index conquers 200-DMA

If Nifty realty index succeeds to break through its 200-DMA, technically the bullish push may trigger further upside in realty stocks.

Nifty Realty Index has risen over 13 per cent, with six consecutive closes seeking to reach its 200-day moving average (DMA). During this rally, its key constituents such as DLF, Godrej Properties, Prestige Estates Projects and Oberoi Realty outperformed by surging 12 per cent to 22 per cent. 

While shares of Godrej Properties continue to trade beneath the key 200-DMA, stocks like DLF, Prestige Estates Projects and Oberoi Realty have successfully leaped over the decisive moving average, which retail community regards as a prime indicator for any investment. 

If Nifty realty index succeeds to break through its 200-DMA, technically the bullish push may further trigger higher upside in realty stocks. 

Shares of Prestige Estates Projects soared over 5 per cent on Tuesday, while Indiabulls Real Estate and Macrotech Developers gained 3.60 per cent and 1.80 per cent, respectively. 

Here’s the technical outlook of these outshining realty stocks:-

NIFTY REALTY INDEX

Likely target: 450 and 470 (once 200-DMA is crossed)

Upside potential: 5.50% to 10%

The 200-DMA of the index stays at 426.30, which once crossed; the up move shall witness move towards 450 and 470 levels, as per the daily chart. This transition may also embark a medium-term bullish trend for the index. 

The support falls at 410 and 400 levels. Only a violation of these cushions could alter the positive bias. The candlestick formations point to a gradual increase in the positive sentiment. CLICK HERE FOR THE CHART

DLF Ltd (DLF) 

Likely target: Rs 440

Upside potential: 9%

Shares of DLF have massively broken out post forming robust base in the range of Rs 350 to Rs 340 levels. A move over Rs 380 has initiated a fresh upside that may eventually hit a new 52-week high of Rs 440. 

Hereon, every dip may see accumulation, with the support of Rs 380 to Rs 370 bolstering the positive trend. There is a surge in the volume, which reveals the interest of the market participants. This further enacts the bullish stance, as per the daily chart. CLICK HERE FOR THE CHART

Prestige Estates Projects Ltd (PRESTIGE)

Likely target:  Rs 500 and Rs 525

Upside potential:   6% to 11%

The crossing of the 200-DMA set at Rs 439.70 has negated the bearish formation developed on the daily chart of Prestige Estates Projects. A sustainability over the 200-DMA shall propel stock to move higher, holding Rs 430 and Rs 420 as the immediate support levels. 

The current trend is headed to Rs 500 and Rs 525, which are the next hurdles. The medium-term trend appears to be quite positive for the stock, and until the key supports are defended, the trend is likely to see long term bullish stance.  CLICK HERE FOR THE CHART

Godrej Properties Ltd (GODREJPROP)

Likely target:  Rs 1,400

Upside potential:   12%

Godrej Properties shares defied the “Falling channel pattern” by moving over Rs 1,191 levels. Now a move above Rs 1,250, its 200-DMA mark, could activate the next leg of up move, aiming to reach Rs 1,400 levels. 

There is an addition of volumes in the current reversal, and that may further see additions if the counter thrives over the 200-DMA. Immediate support for the stocks comes to Rs 1,150 levels, as per the daily chart.  CLICK HERE FOR THE CHART

Oberoi Realty Ltd (OBEROIRLTY)

Likely target:  Rs 980

Upside potential:   8%

Oberoi Realty shares have crossed hurdle of Rs 920, with resilient volume, as per the daily chart. This move shall take stock to the high of Rs 980, where the next barrier exists. 

The support for the stock stays at Rs 870 and Rs 850 levels, as per the weekly and daily chart. The momentum indicator, Moving Average Convergence Divergence (MACD) has risen over the zero line; this could mean the trend may receive support of the bullish momentum.  CLICK HERE FOR THE CHART