Godrej Properties, DLF, Sobha: What lies ahead for realty stocks?

For DLF, a "Higher High, Higher Low" formation on the weekly chart illustrates a firm trend ahead.

Realty stocks such as Indiabulls Real Estate, DLF, Brigade Enterprises, and Godrej Properties, among others have rallied up to 43 per cent in the past one month whereas the Nifty Realty index has gained 18 per cent during the period. 

According to a report by rating agency Crisil, home sales have risen to levels last seen before the lockdown in key markets, including Mumbai and Delhi. The note, released in November, said that some markets have seen even higher sales than before. Maharashtra, especially Mumbai, witnessed sales which were 10-30 per cent higher than the beginning of the year, the firm noted. 

Here's a look at how realty stocks look on charts as the economy recovers from the coronavirus pandemic and how you should trade them. 

NIFTY REALTY INDEX:  A strong move above the 200-weekly moving average (WMA) suggests a firm upward sentiment. This move is supported by market participants with volumes witnessing a rising trend. The Moving Average Convergence Divergence (MACD) has sustained above the zero line indicating an upside direction with momentum staying in the bulls' favour. The trend is heading in the direction of 300 levels with a closing basis support of 270. CLICK HERE FOR THE CHART
 
Godrej Properties Ltd (GODREJPROP): This counter has hit a new all-time high of Rs 1,210 a few sessions back. However, the follow-up buying is not in favour of bulls during this move. This scenario needs to change for the next upward rally. If the volumes stay on the lower end, the profit booking may see aggression. A closing basis support stays at Rs 1,150 levels. CLICK HERE FOR THE CHART
 
DLF Ltd (DLF): A “Higher High, Higher Low” formation on the weekly chart illustrates a firm trend ahead. This formation suggests a rally towards Rs 225 and Rs 240 levels in the near term. The overall trend is bullish, till the counter defends Rs 190 levels. The Relative Strength Index (RSI) is trending upward gradually, indicating a strong support base the counter has managed to build. CLICK HERE FOR THE CHART
 
Indiabulls Real Estate (IBREALEST): Since the last six months, this counter has been trading sideways in the range of Rs 75 to Rs 40 levels. This may result in an upward breakout, only if the stock manages to absorb selling pressure emerging around Rs 75 to Rs 80 levels.  From a short term perspective, till the counter trades above Rs 65 levels, the upside bias may see a jump towards Rs 75 levels.  CLICK HERE FOR THE CHART
 
Sobha Ltd (SOBHA): A firm close above Rs 325 may provide a breakout for this counter towards Rs 350 and Rs 365 levels, as per the daily chart. A “Golden Cross” is hinting towards breakout with market participants showing aggression on volumes. A closing basis support comes in at Rs 315 and Rs 305 levels.  CLICK HERE FOR THE CHART

Brigade Enterprises Limited (BRIGADE): A consolidation breakout with stock forming “Higher High, Higher low” pattern displays a strong up move, as per the daily chart. This trend may lead to higher levels of Rs 250 and Rs 265. The counter needs to defend Rs 220 and Rs 214 levels. CLICK HERE FOR THE CHART