Sector Spotlight: This analyst is bullish on realty sector, picks 3 stocks for high returns
Indian stock markets ended positively on Wednesday for the second day in a row. The BSE Sensex settled at 56,930.56, up by 611 points or 1 per cent.
Indian stock markets ended positively on Wednesday for the second day in a row. The BSE Sensex settled at 56,930.56, up by 611 points or 1 per cent led by Bajaj Finance Limited, Bharti Airtel and Sun Pharmaceuticals. Meanwhile, the 50-share Nifty50 closed at 16,889.40, up by 118 points or 0.7 per cent. All sectoral indices were also trading in the green at the closing time.
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The realty sector stole the limelight and ended up as the biggest gainer on the NSE today. It was almost up 2 per cent at the closing time from the last closing levels of Tuesday. It was followed by Nifty Pharma, Nifty Metal and Nifty PSU Bank which were up 2 per cent, 1.8 per cent and 1.7 per cent, respectively.
Technical Analyst Nilesh Jain said that the Nifty Realty index is up for a significant upside. He picked three stocks that he said will give high returns to the investors.
The sector has been a laggard against its other sectoral peers and then gained steam. The real estate sector has been gaining traction as demand for residential space has picked amid the Coronavirus pandemic.
Nifty Realty today ended at Rs 473.20 and is currently trading off the 52-week highs of 560.90. In the 10-share index, 9 stocks advanced while one declined. The biggest gainers were Brigade Enterprises Limited, Macrotech Developers Limited and Prestige Estates Projects Limited. The stocks were up 8.2 per cent, 6.2 per cent and 5.3 per cent respectively.
Meanwhile, the lone loser was The Phoenix Mills Limited which ended marginally below the Tuesday closing price. The stock was hammered during the previous session.
Jain, who is Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking recommends Sobha Limited, Oberoi Realty Limited and Prestige Estates.
Sobha: Buy| LTP: Rs 864| Target: Rs 950| Stop Loss: Rs 800| Upside 8%
Jain recommends this stock for buying on correction from the current levels. This stock was up over 3 per cent or by Rs 31 today. He said that the stock looks strong on the charts but has moved up significantly today.
Oberoi Realty: Buy| LTP: Rs 849| Target: Rs 950| Stop Loss: Rs 770| Upside 8%
This stock is placed almost identically as Sobha, Jain said. He sees support at Rs 770. Buying is recommended at current levels. This stock was also up 3.7 per cent on Wednesday. This stock has corrected significantly from the 52-week highs of 1051.
Prestige Estates: Buy| LTP: Rs 457| Target: Rs 500| Stop Loss: Rs 410| Upside 8%
Buy on the decline is recommended in this stock and the right level to enter the stock is 440. A double bottom base formation is seen at Rs 410 and a reversal is now seen.
(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.)
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