Top three realty stocks to buy, recommended by Ankush Bajaj

LODHA (current price: ₹1329)

Why it’s recommended: The stock has given a breakout from a falling wedge pattern and has retested the ₹1,320 level, indicating strength. RSI on the daily chart is above 60, confirming bullish momentum.

Key metrics: RSI: 62 (bullish) | Breakout level: ₹1,320 | Pattern: Falling wedge breakout

Technical analysis: Price action shows a successful retest of the breakout zone with strength building up. RSI supports the potential for further upside.

Risk factors: Real estate stocks are sensitive to interest rate changes, government policies, and macroeconomic sentiment.

Buy at: ₹1,329 | Target price: ₹1,380– ₹1,400 in 1–2 weeks | Stop loss: ₹1,285

SOBHA (current price: ₹1322)

Why it’s recommended: The stock has given a rectangle breakout on the lower timeframe, indicating bullish continuation. Additionally, a positive MACD crossover on the daily chart supports the upward momentum.

Key metrics: Breakout level: ₹1,320 | Pattern: Rectangle breakout | MACD: Positive crossover (daily chart)

Technical analysis: Price action confirms breakout from a consolidation zone; daily MACD crossover adds strength to the bullish setup.

Risk factors: The real estate sector is sensitive to interest rates, regulatory updates, and market sentiment.

Buy at: ₹1,322 | Target price: ₹1,345– ₹1,360 in 1–2 weeks | Stop loss: ₹1,305

RAYMOND (current price: ₹1527)

Why it’s recommended: On the hourly chart, the stock has given a triangle breakout. Additionally, a falling wedge breakout is visible on the lower time frame, indicating a potential positive trend in the coming days.

Key metrics: Breakout zones: ₹1,520– ₹1,530 | Patterns: Triangle breakout (hourly) | Falling wedge breakout (lower time frame)

Technical analysis: Multiple bullish breakout patterns across timeframes suggest strong upward momentum. Price action supports a continuation move.

Risk factors: The stock can be impacted by discretionary sector demand, input cost fluctuations, and broader market sentiment.

Buy at: ₹1,527 | Target price: ₹1,580– ₹1,599 in 1–2 weeks | Stop loss: ₹1,470

Markets falter after volatile session

The Nifty 50 ended the day marginally lower on Wednesday, slipping 1.75 points or 0.01% to settle at 24,334.20. The BSE Sensex also closed in the red, down by 46.14 points (0.06%), ending the session at 80,242.24, as late selling pressure wiped out earlier gains.

The Nifty Bank, after initial strength, came under pressure and closed 304.10 points lower (-0.55%) at 55,087.15, signaling a mixed tone in the financial space.

Sectoral performance: mixed signals

Although the market showed some early buying interest, selling pressure in key sectors dragged overall performance. Realty led the gains with a 1.91% jump, supported by positive global cues and strong momentum in housing demand. Pharma and healthcare sectors both gained 0.44%, as investors rotated into defensives during the volatile session.

On the downside, PSU Banks declined 2.23% after an early intraday surge faded. The PSE sector fell 0.78% as traders booked profits following previous sessions’ strength. Energy slipped 0.57%, tracking weakness in global crude oil prices and soft demand outlook.

Stock highlights

Among top gainers, HDFC Life Insurance rallied 4.01% on the back of optimistic earnings guidance. Maruti Suzuki advanced 3.51% as auto sector sentiment remained strong. Bharti Airtel rose 2.23% due to improving demand in both rural and industrial segments.

In contrast, Bajaj Finserv dropped 5.58% following a disappointing quarterly performance, while Bajaj Finance lost 5.04% due to a weak outlook. Trent also saw a decline of 4.06% due to profit booking after a strong recent rally.

Nifty daily and hourly analysis

The Nifty opened flat and traded within a narrow range throughout the day, eventually closing marginally lower by around 2 points. On the daily chart, the index continues to consolidate between 23,900 and 24,500 — a range it has respected for the past five sessions. This sideways movement is expected to persist over the coming sessions.

A minor pullback toward the 24,200–24,100 zone can be viewed as a buying opportunity. On the upside, we remain positive with a near-term target of 24,550.

Sectoral trends:

Realty and pharma stocks outperformed today. Going forward, we expect stock-specific movements to dominate market activity.

Technical insights:

Daily chart: The Nifty remains above the 20-DMA (23,531) and 40-DEMA (23,446), indicating strength. The momentum indicator also shows a positive crossover.

Hourly chart: The index is trading above the 20-HMA (24,327) and 40-HEMA (24,209). However, the hourly momentum indicator shows a negative crossover signalling short-term caution.

Market breadth:

The overall market breadth was negative, with 587 stocks advancing and 2,158 declining on the NSE.

Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.

Investments in securities are subject to market risks. Read all the related documents carefully before investing.

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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.