Real estate sector stocks are on the verge of a breakout on technical charts with key companies witnessing a structural turnaround in business, said ICICIdirect. The brokerage said and are its top picks in the sector based on the strong price structure. “Real estate industry has witnessed strong demand during Q4FY21 (March quarter) across major key markets mainly driven by lower mortgage rates, regulatory interventions such as stamp-duty cuts, and pent-up demand during H2FY21 (October 2020 to March 2021). We expect formal players to be a key beneficiary of growth,” said ICICIdirect.
CMP: Rs 600.25
Buying Range: Rs 595-608
Target Price: Rs 730
Stop Loss: Rs 555
Outlook: The brokerage said that the first quarter of FY22 will be a washout for Oberoi Realty but sales momentum in FY22 is expected to be as robust as FY21 driven by new launches in Thane, GSK Project and subsequent phases of Borivali/Goregaon. ICICIdirect expects the stock to challenge its lifetime high and head towards Rs 730 levels as it is the 123.6% external retracement of July 2018 to May 2020 decline. The brokerage said Godrej Properties’ stock has support at Rs 550.
CMP: Rs 1,364
Buying Range: Rs 1,340-Rs 1,390
Target Price: Rs 1,570
Stop Loss: Rs 1,270
Outlook: The stock is forming a higher base above its 200-day exponential moving average, which has been held since June 2020 and coincided with the multi-year breakout area of Rs 1,200. This is highlighting elevated buying demand that augurs well for the next leg of the up move, said ICICIdirect. The brokerage said the stock has formed a strong higher base formation above the 200-day EMA, which has set the stage to head towards a lifetime high of Rs 1,570 in the coming months.