Macrotech, Brigade Ent: Bet on these stks to benefit from real estate boom

Among other real-estate stocks, Indiabulls Real Estate remains in the bear trap, while Sobha and Godrej Properties were seen struggling to make a come back.

Markets across the globle have been grappling with fears that rising interest rate could have an adverse impact on the economic growth. Back home, minutes of the June policy review, released on Wednesday, showed that the monetary policy committee (MPC) of the RBI could announce more interest rate hikes in the coming months.

However, brokerages believe the increase in the repo rate and the subsequent rise in mortgage rates are unlikely to have a major impact on residential sales in India. READ HERE


 

Against this background, realty shares were seen trading with gains on Thursday in line with the broader market. Brigade Enterprises surged over 3 per cent, while Sobha and DLF gained 2.5 per cent each. Others like Indiabulls Real Estate, Godrej Properties and Macrotech Developers were up 1 - 2 per cent each.

Going ahead, here's an outlook on select realty stocks on the basis of the technical charts:
 

Brigade Enterprises Ltd (BRIGADE)

Outlook: Making efforts to cross 100-DMA

After hitting a historic peak of Rs 554.70 in March 2022, shares of Brigade Enterprises have been flashing negative signals. The stock dipped 20 per cent from the peak, breaking the 200-day moving average (DMA) support. The 100-DMA, placed at Rs 473, is the critical hurdle for the stock, shows the daily chart. On the lower side, as long as the recent pullback mark of Rs 376 is held, the stock can attempt to cross the 100-DMA barrier. CLICK HERE FOR THE CHART

Sobha Ltd (SOBHA)

Outlook: Death Cross neckline at Rs 480

The stock has tumbled close to 50 per cent after hitting an all-time high in January 2022, which was long due since 2006. The stock is on the verge to lose further ground, if it fails to sustain above Rs 480 - the neckline of a "Death Cross", depicts the daily chart. On the bullish side, the stock needs to conquer Rs 568, its 50-DMA for a fresh upward rally. CLICK HERE FOR THE CHART

Macrotech Developers Ltd (LODHA)

Likely target: Rs 1,250 and Rs 1,400 (breakout above 200-DMA)

Upside potential:  10% to 23%

The recent breakout of the "Double Bottom" has pushed Lodha towards the hurdle mark of Rs 1,135, its 200-DMA. The next rally or continuation of the bullish breakout shall appear once the stock conquers its 200-DMA. As of now, Rs 970-level, which is its pattern breakout neckline, remains a key support area. A rally abve 200-DMA could foresee Rs 1,250 and Rs 1,400 levels for the stock, as per the daily chart.  CLICK HERE FOR THE CHART

Indiabulls Real Estate Ltd (IBREALEST)

Outlook: Stock is in a bear trap

A bearish formation has enveloped this stock since November 2021. The stock has tanked nearly 70 per cent from the high of Rs 195.90. Indiabulls Real Estate is likely to trade with a negative bias as long as the stock trades below its obstacle at Rs 70, shows the daily chart. CLICK HERE FOR THE CHART

Godrej Properties Ltd (GODREJPROP)

Outlook: Bearish pattern of Head and Shoulder

Shares of Godrej Properties trade with a bearish formation of "Head and Shoulder", violating the neckline of Rs 1,200. Now, as long as the stock stays under Rs 1,200, the selling pressure is expected to aggravate. The stock needs to cross Rs 1,400-level to regain some short-term momentum.  CLICK HERE FOR THE CHART