The Indian real estate sector is witnessing a bullish phase, fuelled by strong demand in key cities like Bangalore, Hyderabad, and Mumbai. However, the broader market has recently undergone a correction, with the Nifty index retreating. While this has introduced a degree of uncertainty, it also offers potential opportunities for traders.
Resilient sectors such as real estate continue to display strength, with select stocks maintaining upward momentum despite market fluctuations.
Despite the recent pullback in Nifty 50, the real estate sector remains robust, buoyed by a favourable demand-supply imbalance. With demand outpacing supply, prices continue to rise, sustaining positive investor sentiment. The sector is projected to deliver attractive annual growth of 7-8%.
However, affordability concerns loom large, as rising property prices combined with stagnant wage growth may challenge first-time buyers, potentially dampening demand over time. This dynamic warrants close monitoring, particularly amid a broader market correction that could further weigh on consumer sentiment.
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Historically, the real estate sector has consistently outperformed the Nifty in terms of returns. Even during the recent Nifty correction, the sector demonstrated resilience, experiencing only a brief dip before rebounding strongly. With key stocks exhibiting bullish momentum, the sector appears poised for another breakout. If the Nifty finds support and continues its recovery, real estate could stand out as one of the most promising sectors for short-term investment.
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The recent market-wide volatility, driven by the Nifty’s correction, has done little to shake the Indian real estate sector’s strength. Leading stocks such as Lodha, Prestige, Godrej Properties, and Oberoi Realty have maintained their bullish trends, underscoring robust underlying demand and sustained investor confidence in high-growth markets.
Three stocks from the real estate sector to buy, recommended by NeoTrader’s Raja Venkatraman:
• Prestige Group: Buy above ₹1,760 , stop ₹1,735, target ₹1,815
Post entering the F&O space, the sharp upside seen in shares of Prestige Group underwent some profit booking scenario. Now, the current set of supports as seen on the charts indicate that we could now be in a good spot to rebound. With the buying interest developing look to consider some buying opportunities in this counter.
• Oberoi Realty: Buy at ₹2,329 and dips to 2,300, stop ₹2,280, target ₹2,385
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A leading premium player in Mumbai’s real estate market, Oberoi Realty continues to benefit from robust demand, driving bullish momentum and supporting price strength. While the broader markets face volatility, this real estate stock is trading near key trendline supports, presenting a potential buying opportunity.
Additionally, rising open interest indicates that some short positions may be building, signalling the emergence of bearish sentiment in this counter that warrants close monitoring.
• Ashiana Housing Ltd: Buy at ₹350, stop ₹335 target ₹380
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Ashiana Housing, known for its middle to upper-middle-income residential projects in India’s satellite cities and towns, has been on a decline over the past six months.
Also read | Realty stocks lose some ground as property boom takes a breather
However, recent price action suggests the formation of a rounding pattern, indicating potential for an upward bounce. This setup presents an opportunity for short-term investment, making the stock worth considering for traders looking to capitalize on its recovery.
Raja Venkatraman is co-founder, NeoTrader.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
