Nifty Realty index is in demand zone. Charts suggest it’s the right time to buy

Market


The Nifty realty index broke out of a 10-year consolidation in July 2021 at 370. It went on to hit the high of 560 in November 2021.

As the Indian share market corrected, the realty index is down 35% in the last 7 months.

The question on everyone’s mind is, should you buy the dip?

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The charts are suggesting that the index is in a demand zone right now.

The 10-year consolidation breakout was re-tested at 370 giving investors an opportunity to accumulate the best stocks.

The black parallel lines on the weekly chart above indicate that the demand zone of 350-370, along with the 50% Fibonacci retracement level from the low of 160 to high of 560, is placed at 360.

Relative Strength Index (RSI) in the lower panel is approaching the buying level as the price is at a strong support zone.

Technically, the re-test of the breakout offers an excellent low risk – high reward trade setup.

Investors should grab this opportunity in realty stocks.

These are the Nifty realty index components which should be eyed:

⦁ Brigade Enterprises

⦁ DLF

⦁ Godrej Properties

⦁ Indiabulls RE

⦁ Macrotech Developers

⦁ Oberoi Realty

⦁ Prestige Estates

⦁ Sobha Developers

⦁ Sunteck Realty

⦁ The Phoenix Mills

The Nifty realty index today ended up 3.6% at 384.

If you’re interested in being part of my charting journey as I share how to create wealth from profitable trade setups, join my telegram channel – Fast Profits Daily.

Disclaimer:This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com

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