DLF, Macrotech Developers: Realty stocks remain resilient amid sell-off

Since the start of the current year, the Nifty Realty pack has remained laggard and traded with a weak bias down 1.5 cent lower so far in 2023.

Shares of realty stocks are poised to stage a resilient comeback, with Sobha and Macrotech Developers registering their best-ever booking in the December ended quarter. Sobha added 22 per cent growth in Q3FY23 compared to its previous quarters, while Macrotech Developers posted 16 per cent rise in sales volumes.

In Q3FY23, among realty stocks, the best performing developers was Lodha which soared 18 per cent. DLF and Indiabulls Real Estate gained 5 per and 4.30 per cent each during the same period. 

Since the start of the current year, the Nifty Realty pack has remained laggard and traded with a weak bias. The Realty Index trades 1.54 per cent lower so far in the current year. 

On Wednesday, Indiabulls Real Estate gained lead the pack soaring 1 per cent, followed by Godrej Properties which gained 0.60 per cent in a volatile session.

To understand the future stance of realty stocks, here’s the technical outlook:-

NIFTY REALTY INDEX

Outlook: Weak under 200-DMA

The Nifty Realty Index trades beneath the 200-day moving average (DMA) positioned at 433 suggesting bulls to stay aside until the index does not defend the support. To breakout on the upside, the bulls could be looking at 445, which the index is unable to conquer since the major breakdown in December last year. Once this mark is surpassed, the index is anticipated to gain momentum to stay afloat. The immediate support for the index exists at 420 levels. CLICK HERE FOR THE CHART

Macrotech Developers Ltd (LODHA)

Outlook: Current trend is sluggish

While the current daily chart structure denotes a sluggish move in the Macrotech Developers shares, the earlier “Double Bottom” breakout continues to bolster any corrective declines. The stock has an immediate support of the 50-day moving average (DMA) set at Rs 1,025 mark, followed by Rs 1,000 levels, both need to be considered on the closing basis. Only if these cushions are violated then the counter may lose the upside bias. Otherwise, the reversal could see the stock regaining Rs 1,100 levels in the coming sessions. CLICK HERE FOR THE CHART

Sobha Ltd (SOBHA)

Outlook: Death Cross dominates bullish sentiment 

The broad trend in the shares of Sobha reflects a negative bias; with the price action gradually deteriorating post the breakdown of the “Death Cross” emerged on the daily chart. The recent trend signals a smart reversal which unless breaks through the neckline hurdle of Rs 608, the trend may not seek the attention of the bulls. The immediate supports come to Rs 565 and Rs 545 levels. The current sentiment reveals the stock is expected to witness selling pressure on every successful reversal. CLICK HERE FOR THE CHART

DLF Ltd (DLF) 

Outlook: Trading in a range 

Shares of Dlf are stuck in a trading range of Rs 385- Rs 365, which are its 100-DMA and 200-DMA respectively. The trend would take a direction once these levels are consecutively breached, with robust volumes. The breakout could spur 30-40 points rally in either direction. The technical indicator, the Relative Strength Index is trading sluggish beneath the value of 50, if manages to rise over the same, the trend could revive the upside bias.  CLICK HERE FOR THE CHART

Indiabulls Real Estate Ltd (IBREALEST)

Outlook: Barrier at 200-WMA

To breakout on the upside, the Indiabulls Real Estate shares must overcome the barrier of 200-weekly moving average (WMA) currently set at Rs 90.60, which the stock is unable to defeat since May last year. Once this mark is conquered, the short-to-medium term outlook could shift to a bullish stance, with stock heading towards Rs 120 levels. At present, the current support is at Rs 70 levels. CLICK HERE FOR THE CHART