Real Estate Stocks Outperforming Indian Markets

Indian real estate has been on a surge for the past month and realty stocks have gained 48 % on an average while investors accumulated these stocks heavily.

CNX Realty, the benchmark index for real estate stocks traded on the National Stock Exchange, India was trading at around 154 during the first week of March 2014 and has gained over 30 % since then after closing at 201 on Friday. The Index has been outperforming NSE's Nifty 50 benchmark throughout the month of March. Lets take a look into the stocks that caused this and try and develop a trading view.

Contributing a staggering 57% of the CNX REALTY index, DLF Ltd has been a winning outperformer throughout March 2014.

A steep rise from 138 to 178 in a week's time made it a sure winner during the first half of March, which is when the stock outperformed the CNX REALTY index. A close look at the relative Strength indicator below the price pane reveals that the stock has been underperforming since 27th March 2014.

As we can see on the charts, prices for DLF Ltd are facing severe resistance due to two factors : first of all, Camarilla pivot level H3 is at 190.31 which is a very strong resistance. The stock is already within the proximity of that level and hence is being faced with severe resistance. Secondly, Wolfe wave trend lines (the green diagonal line seen on the chart) is also a strong resistance level. We can expect gains on the prices only when these resistances are overcome.

For such accurate analysis of price action of stocks you could try out our chart analysis services.


Since the end of March, Unitech Ltd has been outperforming CNX REALTY. The stock rose from Rs 12 to almost 17, a staggering 54 % rise in a matter of just 15 days.

Charts depict that there still is a lot of steam left in the stock. It could easily hit the 18 mark, which is the H5 resistance level for April 2014. Once crossed, it could herald another bullish breakout.

Sobha Developers
After a bullish run from the end of February, Sobha finally seems to have lost some steam as it gradually underperforms the CNX REALTY index.

Resting in a in trending zone where there is no strength of trend in any direction, its is unlikely to see any strong moves in the stock unless it crosses the 400 mark.


Another sure winner is HDIL which has been outperforming CNX REALTY since early March.

The stock is headed towards H5 Camarilla level of 83 after having crossed major resistances at 62 and 67.
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