Sector Spotlight – Realty stocks to remain in focus - analyst recommends 3 scrips for gains

Real Estate sector is in focus and is expected to continue its good show over the next six months according to technical analyst Nilesh Jain. The sector has emerged out from being a market laggard to an active participant Jain said. NSE Realty index has outperformed the Nifty50 and returned over 34 per cent gain over the past 8-9 weeks versus over 4 per cent returns by the 50-share index. 

The sector is under spotlight and there are certain stocks that are expected to do well, he further said. Jain is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking. 

See Zee Business Live TV Streaming Below:

The Nifty Realty sector has emerged from a 10-year consolidation phase and an upside of 600 is now open in the near to positional term basis, Jain said. 

The Nifty Realty index was trading negatively in Monday morning trade after an extended weekend and was trading at 547.75, down 0.3 per cent from the previous closing. It opened in the green. In the 10-share index, 4 stocks were trading positively while 6 declined.   

The top gainers during the early morning trade were Indiabulls Real Estate, The Phoenix Mills Limited and Godrej Properties Limited which were up 2.8 per cent, 2.7 per cent and 0.2 per cent up respectively. 

Meanwhile, the top losers were Oberoi Realty Limited, Sobha Limited and Macrotech Developers which were down 3 per cent, 1.8 per cent and 1.2 per cent respectively. 

On Thursday, the NSE Nifty Realty index ended at 548.05, up 1.3 per cent from the last closing on Wednesday. The stock markets were open for Muhrat trading on account of Diwali and were shut during the day and Friday. The markets will reopen today. 

The Nifty Realty index has gained over the last 5 trading sessions. 

The Nifty Realty index is building up on its ongoing momentum. It witnessed an 11-year breakout on 29 October, Jain said. Jain said the follow-up buying is expected to continue in the real estate stocks. He sees the index testing levels of 600. 

He has picked three stocks from the sector, which he said have high potential over the near to short term period. 

Indiabulls Real Estate Limited: Buy around Rs 181| Target: Rs 200| Stop Loss: Rs 165| Upside 10% 

Jain said that this stock has been an underperformer and he has previously recommended it for targets of Rs 170 and Rs 185. The stock has hit both its targets. Existing investors must hold this stocks for a price target of Rs 200. New investors must buy on decline. The stock ended at s 186.30 on Thursday 

Godrej Properties Limited: Buy| LTP: Rs 2436| Target: Rs 2600| Stop Loss: Rs 2300| Upside 7-8% 

The shares of Godrej Properties ended marginally down at Rs 2428. The stock has moved upward over the last 5 trading sessions. The stock could be bought at current levels or on decline. The stock has been seeing a lot of traction in the futures and options (F&O) markets. 

Oberoi Realty Limited: Buy| LTP: Rs 1001| Target: Rs 1100/1150| Stop Loss: Rs 970| Upside 15% 

The shares of Oberoi Realty ended at Rs 1029.10 on the NSE on Thursday. It was 0.6 per cent down from the Thursday closing price. Buy on decline is advised in this scrip for the price targets of Rs 100 and Rs 1150 and Rs 1100. The right levels to buy this stock is Rs 950 and below.