Technical Check: 60% in 2021! This real estate firm looks poised for a 30% upside; here’s why

Prestige Estate Projects Ltd rose a little over 60 per cent so far in the year 2021 compared to the 26 per cent gain seen in the Nifty50 in the same period.

The stock with a market capitalization of more than Rs 17,000 cr hit a 52-week high of Rs 507 on the BSE on 28 September, and since then it has been consolidating gains.

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The stock is hovering around its crucial support placed at 50-Days Moving Average around Rs 427 (LTP is Rs 426 on 29 October). The stock is displaying signs of a base formation which could augur well for the bulls.

The stock closed above its 50-DMA last week but underwent selling pressure amid selloff seen in markets, but the trend still remains on the upside, if the momentum resumes above 50-DMA.

A decisive close above the 50-DMA could take the stock towards Rs 550 which translates into an upside of a little over 29 per cent from Rs 426 recorded on October 29, suggest experts.  

The stock is trading below the 50-DMA for the past 5 trading sessions, but above 100-DMA since June 21, 2021, and 200-DMA since May 26, 2021.

Prestige Group is a property development company in South India. The Company is maintaining its leadership position in Bengaluru and has a significant presence in Hyderabad and Chennai.

It has also extended operations in recent years to Kochi, Mangalore, Goa, Mysore, Pune, Mumbai, Ahmedabad, NCR and Udaipur.

In terms of institutional shareholding, FPIs decreased their holding from 28.15 per cent to 25.31 per cent sequentially for the quarter ended September, while mutual funds increase their stake to 2.6 per cent in Q2 from 2.11 per cent in the previous quarter.

The company will be starting its malls in Tier-II cities such as Ahmedabad, Amritsar, Bhubaneswar, Chandigarh, Indore, Mysuru, and Kochi. The Company will be launching Prestige Smart city on the HDFC platform for targeting mid-income buyers.

Technically, in the last four months, the stock price has seen a major rally to cross its previous high of 426 and hit new all-time high of 507 last month.

“Volumes were high on up move and below averages on declines indicating buying participation in the stock. For the last couple of months, the stock has been consolidating above its previous high which is typical in a trending stock,” Ashish Chaturmohta, Director Research, Sanctum Wealth, said.

“It is forming a base for the next leg of the rally while consolidating its gains. Stock is lower levels and taken support at 50-Day Moving Average. The stock can be bought at current levels and dips to 425 with a stop loss of 410 for a target of 550 in the coming 6-9 months,” he said.

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