Time For a Realty Check

JC Parets
September 28, 2021

In the week gone by, the Realty sector performed exceedingly well. We added the index to our Three Charts for the Week Ahead post as well. The reason for that was that the index constituents are trading at crucial levels.

With the stocks jumping up above their resistances, we thought a post should be dedicated to the Realty sector.

So let's take a look at some interesting ideas.

Realty has been moving sideways for a while after breaching its 2018 highs. In the week gone by, we witnessed a strong move in the index. While the index is trading close to its overhead resistance, the strong momentum could take the price higher.

But about relative strength? Do you reckon there's something there?

What works in favour of the sector is the relative strength chart. The line chart below is breaking out of a long-term downward sloping trendline. An attempt had been made early this year as well. But look at the sharp move now! You can tell that the momentum is strong.

Now let's see what's going on at a stock level.

First up, is DLF, of course. The stock has broken out of an 11-year-giant base! With this move, the price looks ready for the next leg up. But it's important to keep in mind that the risk management level of 385 must be maintained diligently.

The breakout is pretty clean and neat. What we need to focus on is the follow-through.

We are bullish above the risk management level of 385 with a target close to 512.

Next up, we have Godrej Properties. This one was also a part of our most recent Trade of the Week recommendation.

Here is one stock that stands out on both an absolute and a relative basis.

The price broke out above its overhead level of 1995 and is headed towards its next target of 3,130. The indicator is supportive of this move as well!

We are bullish above the risk management level of 1,995 with a target of 3130.

Brigade Enterprises is another name that has shown strength. The price broke out above 356 and has been holding on to those levels.

The indicator has remained close to bullish momentum territory even as it moved sideways. The positive move in the indicator, as well as price, elicits a bullish position on this stock.

We are positive above the level of 356 with a target near 520.

Kajaria Ceramics has been a regular feature in our Trade Ideas. And what we have here is yet another breakout!

The price moved past the level of 1,095 after consolidating beneath it for several weeks. With this breakout, the stock is poised to move higher towards its next target as the indicator moves into bullish momentum territory.

We are bullish above the level of 1,095 with a target near 1,590.

The sharp move is coming through in big names as well. We have L&T here that has broken out above the level of 1,625, along with a close to three-year base breakout!

The indicator is yet to move above 70, so that's something we're keeping an eye on. But the setup looks positive.

We are bullish above 1,625 with a target near 2,210.

We like smiley faces! We've made that pretty clear from the outset. But what we also like to see is the follow-through in the smiley faces!

You can see here how the price broke out of a four-year base with strong follow-through. With that done, the price broke out above its next resistance with ease.

We are bullish above the risk management level of 821, with a target near 1,150.

Phoenix Mills has made a move that it has been attempting to do on four occasions in the past. The price has been struggling to absorb the overhead supply at 885 since last year. With that taken out, the price is free to fly!

What we'd like to see develop going forward is the strength in the indicator as well.

We are bullish only as long as the price remains above 885. The target to track would be 1,145.

Another such example of a high overhead supply zone being taken out is that of Kolte Patil. The price finally absorbed all the supply we could see near the level of 290. The more times a level is tested, the more likely it is to breakout! That is exactly the case here!

We're also happy with the smiley face on the chart, so that's a big plus.

We're bullish above the level of 290, with a target near 405.

PNC Infratech broke out above its resistance a few weeks back but has been consolidating since. BUT, its been consolidating above the crucial level. And you know how much we love to see that!

The indicator is back in the bullish territory to add more strength to the move. So we're bullish above 320, with a target near 470.

Here we have another happy chart with a smiley face. The price broke out above the level of 695, breaking out of a four-year base! That's huge!

We're seeing the strength in the indicator as well and the price has been consolidating above the breakout level, which is great!

We are bullish above the level of 695, with a target near 1,050.

So here was a round-up of the Realty Sector that has suddenly sprung back into action!

As you can see there are several trade ideas here, that you could select from based on your investing style and trade prerequisites.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team

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