Nifty Realty at over 2-year low; Relief rally on cards? Analysts top 3 bets

Nifty Realty Index: Hitesh Tailor, technical analyst at Choice Broking expects Sobha, Oberoi Realty and Prestige Estates to bounce back amid signs of positive divergence on the RSI indicator.

The Nifty Realty index has cracked almost 10 per cent this month, and is seen quoting with a negative bias for the fifth straight month. During this period, the Realty index has tanked as much as 27.7 per cent.  In the process, the Nifty Realty index is now quoting at its lowest level since November 2023 - a more than 2-year low, according to the monthly chart.  Given the sustained fall in the index, Hitesh Tailor, Technical Research Analyst at Choice Broking believes a short-term pullback cannot be ruled out.  Here's a detailed technical analysis by Hitesh Tailor on Nifty Realty, and his top 3 preferred stocks from the sector. 

Nifty Realty

  Hitesh Tailor highlights that the overall trend for Nifty Realty remains weak, with the index quoting below the key 50, 100- and 200-EMAs. However, a short-term upside reversal or pullback rally could emerge from current levels given the positive divergence on key momentum oscillators.  "Key momentum indicators are offering early signs of relief, with RSI hovering near the oversold zone around 30 and showing a bullish divergence, suggesting a potential exhaustion of selling pressure and the possibility of a short-term pullback," explains the analyst from Choice Broking.     

Sobha

Current Market Price: ₹1,271 

 

 

  Sobha appears to be positioned within its accumulation zone on the weekly chart. The stock is seeking support around the 200-week EMA near ₹1,220, indicating a strong technical base, says Tailor.  The RSI on the daily chart is showing a bullish divergence at these levels, suggesting weakening downside momentum and the potential for a reversal, the analyst noted.  Tailor reckons placing a stop below the 200-week EMA at ₹1,190, with an eye on a potential rally towards ₹1,400 in the near- to medium-term.

Oberoi Realty

Current Market Price: ₹1,443 

 

  Similarly, the analyst expects support for Oberoi Realty around its 200-week EMA, which stands at ₹1,355, coinciding with the 50-month EMA at ₹1,328.  Tailor sees immediate support for the stock around ₹1,400, which could act as a favourable zone for buy-on-dips strategies, with stop loss placed at ₹1,360. On the upside, he expects the stock to target ₹1,600. 

Prestige Estates Projects

Current Market Price: ₹1,252 

 

  Prestige Estates Projects is also showing signs of a potential pullback setup after a sharp corrective phase. Since mid-February, the stock formed a top near ₹1604 and declined toward the ₹1200–1205 zone, maintaining a lower high–lower low structure on the daily timeframe, reflecting prevailing bearish pressure, says Tailor.  However, on the weekly chart, the stock is approaching crucial support near the 200-week EMA around ₹1,200, which has historically acted as a strong demand zone.  If the stock sustains above ₹1,200, the analyst says a technical bounce to ₹1,350 - ₹1,355 levels can be expected. Tailor recommends placing a stop at ₹1,180.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.