Technical Check: Potential upside in Oberoi Realty up to 60% in next 6 months; Is it time to buy this high beta stock?

The upside in Oberoi Realty Ltd may not be over yet despite the stock gaining 60 per cent in last 1 year, compared to over 21 per cent upside witnessed in Nifty50 during the same period, and the investors can look to buy it on dips.

With a beta of 1.5, Oberoi Realty has been riding the liquidity wave. The stock is up nearly 6 per cent in the last 5 sessions and over 7 per cent in a month.

Beta factor describes the movement in a stock's or a portfolio's returns in relation to that of the market returns, NSE explained in a note. A beta greater than 1.0 suggests that the stock is more volatile than the broader market.

Investors holding the stock can continue to hold while fresh money can be deployed now or on dips towards 945-891-855, suggest experts.

Oberoi Realty with a market capitalization of more than Rs 35000 cr hit a 52-week high of Rs 1051.90 on the BSE in November 2021, and since then the trend had been sideways.

On the weekly charts, Oberoi Realty hit a low of 770 where it formed a strong base in December and then bounced back. It retested the level again in March 2022 and then bounced back.

The stock seems to be hovering in a tight range of 770-950. The stock finally broke out from this tight range last week which is a positive sign for the bulls. The upward move was accompanied by strong volumes which suggest strength.

Most of the technical indicators suggest a strong price up move which could take the stock towards 1300-1600 levels that translates into an upside of over 60 per cent from Rs 987 recorded on 1 April, suggest experts.

“After making higher bottoms, recently the stock gave Range breakouts & made a high of 996.4 accompanied by supportive volumes. The Vortex indicator confirms current Uptrend and PVT Indicator suggest a possible up move,” Bharat Gala, President - Technical Research, Ventura Securities Ltd, said.

A Vortex Indicator is a technical indicator which is used to identify trend or trend reversals. It is made up of 2 lines – an uptrend line and a downtrend line. Traders should use this indicator along with volume price trend, supertrend as well as volume activity, suggest experts.  

“Since January 2021 the stock is trading above averages and the Supertrend is in positive mode. The possible targets are 1300-1600 in next 2 quarters. If the stock price corrects downwards the buy levels are (945-915)-891-(865-855). A stop loss to be observed in the trade is 837,” Gala said.

(Disclaimer: The views/suggestions/advice 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.)