MODI IMPACT ON REALTY
By Garima Sabharwal
Before India's general election results are out, the stock market has touched an all-time high for obvious reasons. The investors are now looking at the much-needed change and at the same time, wish to offer a trial time to Mr. Modi to bring an economic upswing. We can safely say it’s a modi wave happening.
It is always said that when there is a sharp rise, there will be a sharp fall in markets. After seeing a beautiful rally in the start of 2014 on back of investors looking forward to BJP being in power and we hope the rally continues in markets. But everything now depends on election results which are on 16/May/2014, as retail investors are showing some lack of interest (so that they can take sound decision after poll results). I must say, it’s never too late or too early to pick up the stocks.The main thing is to have a perfect entry and proper exit.
The CNX Realty is signaling some lack of interest from the investors. Momentum for the upside will be seen only if it breaks 205 with the positive bias or else this can move in the consolidation phase.
Now let’s talk about some real estate stocks.
DLF is trading in a healthy range of 120 to 186 from Aug 2013 till date and it last closed at 155.2 as on 25/April/2014. The view for a week or so: One can buy this on dips or below 155 for the target of 174 and maintain a strict stop loss 145.
In the year June 2009, DLF made a low of 114.65 and still its trading at 155. So for the medium and long term players should wait and watch for some time till it breaks the consolidation phase and take a proper and clear direction. Or else if it comes down buy with a strict stop loss of Rs. 100 and hold for the target 340 to 490 (For a year or so).
HDIL in the month of April 2014 touched a high of 81.7, since feb 2013. Maximum this rally can stretch upto 107. I would recommend a cautious view. But still those who are willing to buy this stock and take a chance should maintain a strict stop loss of 68 and hold for the target of 85. Last closed at 75.05 as on 25/april/2014.
Long term players should wait and watch, as we need to see that how the stock reacts at 107. For medium term players those who want to take risk can sell the stock on rise with a strict stop loss of 108 or little above and keep target of 55.
IBREALESTATE, again is facing a very long consolidation period from September 2011 till date in a range of 41 to 89, last closed at 66.2 as on 25/April/2014. Technically, its showing a symmetrical consolidation pattern, which clearly depicts that any of the breakout either on the upside or downside will the stock up to 85 to 90 or will bring back this to 45 levels.
Unitech after 16/July/2013 it has stayed below 21 levels and it made some of the attempts to breach this but all failed. Now at this point this may again try to give an attempt and retest 21 level, last closed at 16.8 as on 25/April/2014. A proper direction for upside will only be seen if it trades above 21 with positive bias.
Levels of DLF, Hdil, Ibrealestate and unitech is in Futures derivatives.
Deltacorp after having a wonderful rally from 47.35 to 127.7 since 25/March/2013 to 7/Jan/2014 has had a downfall followed by a consolidation movement as it last closed at 100.70 on 25/April/2014. For the short term players - they can buy this stock at current levels for the target of 109 and keep stop loss at 96. It’s a wait and watch situation for medium and long term investors.
Disclaimer: The above information is solely based on technicals and has not been taken from any other source/website. The author bears no responsibility for any loss due to investment(s) or consequence arising out of any information given in this article.