Sector Spotlight: Know why realty sector is in focus for this analyst; DLF, Oberoi Realty are top bets for gains

Sector Spotlight: Indian stock markets ended Monday on a weaker note dragged by technology and financial sector stocks. The BSE Sensex ended at 58,964.57, down by 482.61 points or 0.81 per cent. Meanwhile the NSE Nifty50 index ended at 17,674.95, down by 109 points or 0.62 per cent.

Sectorally, 10 out of the 15 indices ended in the red with Nifty IT becoming the worst performing index. It was down over 1.4 per cent followed by Nifty Financial Services. However, certain sectors did exceedingly well with Nifty Oil & Gas sector coming out trumps. Nifty Realty was another sector which closed the day in the green.

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But for market expert Nilesh Jain, realty sector is one which continues to be in a spot light. The Nifty Realty Index gained over 1 per cent on Monday. The analyst is bullish on this sector and sees a considerable upside in certain realty stocks.

Jain is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking.

Nifty Realty Index ended at 479.85 and in this 10-share index, seven stocks ended positively while three ended in the negative. Oberoi Realty Limited was the top gainer and was up 4.7 per cent followed by Indiabulls Real Estate Limited which was up 2.5 per cent. DLF was the third biggest gainer and ended up nearly 2 per cent.

The losers were Macrotech Developers Limited, Prestige Estates Projects Limited and Sunteck Realty Limited.

Jain puts his bets on Oberoi Realty and DLF shares for top gains. This is what he recommended for these stocks. He said that the Nifty Realty index is poised for an upside and could test levels between 500 and 520 in the near term. He said that there has been a breakout in this index after a sideways consolidation and the indeed was trading at levels above its 200-Daily Moving Average.

Oberoi Realty: Buy| LTP: Rs 1003| Target: Rs 1060/1100| Stop Loss: Rs 950| Upside 10%

Jain recommends a buy in this stock at levels between Rs 980-990 calling it a favourable risk-to-reward ratio. The view on this stock is positional, he said.  

DLF: Buy| LTP: Rs 403| Target: Rs 425| Stop Loss: Rs 385| Upside 5%

Buying on decline is recommended for best risk-to-reward ratio, Jain said. Te support should be seen as a stop loss, he added. The right levels to buy this stock is Rs 395-400.

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)