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Nifty Realty on the Move!

September 06 2021 | Reading Time: 5 Minutes
 
Nifty Realty Index has traded in line with our expectations and is up 16% after we published the report on June 24. After hitting a multi-year high at 423, it was volatile since August 3 and retested its 50-DMA. Volume was comparatively lower during the correction in August. The index lost around 3% in the previous month and formed a high wave like candle on the monthly chart.

Here are our technical observations on multi-timeframe charts, which suggest the continuation of current bullish trend in the next few weeks and months:
 
  • This index witnessed correction after hitting a multi-year high and retested its recent breakout around 360–370. However, volume during the correction was comparatively low and index took support around its 50-DMA and around breakout level. Furthermore, it has formed a bullish flag continuation pattern and shown faster retracement from the recent fall which signals the continuation of a bullish trend. 
  • The index is trading above all key moving averages on the daily chart and price action on higher timeframe charts (i.e. weekly & monthly charts) show consistent higher peak and higher trough formation, which indicates a strong bullish trend in this space. 
  • The momentum indicator RSI is trending in the bullish zone on higher timeframe charts. Currently, it is trending above the previous three-year range with upward slope in bullish territory. Apart from RSI, trend following indicator, MACD, is also trending in upward slope above central line along with positive crossover on weekly and monthly charts. 
  • Further, this sectoral index is trending above the 11-year range and looks ready to outperform in the upcoming weeks and months.
Thus, after considering all these technical parameters, we expect this sectoral index may remain in a strong bullish trend and is ready to move toward 510–550 (almost 25–30% above the current level) in the next few weeks and months. And we advise our subscribers to follow “Buy on Dips” strategy in this space.
 
Stocks to Watch in This Space are -
 
DLF

Godrej Properties

Phoenix Mills

Sunteck Realty

Prestige

Lodha

Indiabulls Rlst
 

What do you think? Please email us any questions or comments.

Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.For more information, see our Legal disclosures here.

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