Two Real Estate Stocks Show Strength After Interest Rate Cut
Indian traders were optimistic about an RBI interest rate cut, and when it materialized, it fueled positive sentiment.
- Despite global market uncertainties and tariff concerns,
- signs of recovery are emerging, especially in the real estate sector.
Stocks like DLF and Oberoi Realty, which had witnessed sharp declines, are now showing clear signs of improvement, hinting at a potential bullish phase ahead.
April Events Spark a Market Turnaround
April 2025 has proven eventful for global and Indian markets.
- On April 7, news of US tariffs caused significant global volatility.
- Yet Indian markets rebounded quickly, with the Nifty rising from 22,400 to 24,300 within 15 days.
The RBI’s rate cut on April 9, 2025, played a pivotal role in stabilizing sentiment, especially for sectors like real estate, automobiles, and finance.
- Based on the current momentum, real estate could see a robust phase ahead.
Oberoi Realty: Signs of a Potential Bullish Reversal
Oberoi Realty experienced a 38% decline from its December 2024 peak, with the stock falling from ₹2,343 to ₹1,451.
- However, the recent bounce from these levels suggests a possible trend reversal.
Key Indicators Highlighting Oberoi Realty’s Recovery:
- Double Bottom Pattern: Formation of this bullish pattern hints at a reversal.
- Support Above 50-Day Moving Average: Sustaining above this crucial average reinforces positive sentiment.
- Rising Volume: Increased trading volume supports the upward price movement.
- RSI Above 60: A stronger Relative Strength Index (RSI) indicates building momentum.
Outlook for Oberoi Realty
Oberoi Realty delivered a staggering 195% return from April 2023 to December 2024, before facing correction.
- Despite the dip to ₹1,450, technical signals now hint at a potential recovery.
- Formation of a double bottom and a bullish RSI trajectory strengthens the case for further upside.
DLF: Ready for a Potential Reversal After Price Correction
DLF witnessed a 33% drop from January to March 2025, correcting sharply before showing signs of recovery.
- Current bullish signals suggest a possible resumption of its earlier uptrend.
Key Technical Indicators Supporting DLF’s Recovery:
- Breakout from Falling Channel: A technical breakout signals the end of the downtrend.
- Support Above 50-Day Simple Moving Average (50SMA): This key support level suggests strength.
- Volume Surge: Rising volumes validate the bullish breakout.
- RSI Above 55: Strengthening RSI reflects increasing buying interest.
Outlook for DLF
DLF had offered a 187% return between March 2023 and March 2025, before retracing from ₹896 to ₹601.
- Despite this correction, the technical outlook now points towards a potential bullish reversal.
- Key breakouts and stronger RSI readings suggest upside potential going forward.
Final Take
Both Oberoi Realty and DLF are flashing technical signals that indicate potential bullish trends in the coming months.
- Formation of bullish chart patterns,
- stronger RSI readings, and
- crucial breakouts suggest growing investor confidence.
The RBI’s rate cut has enhanced market sentiment, particularly benefiting the real estate sector.
- Lower interest rates boost housing demand and affordability,
- providing a solid foundation for stocks like Oberoi Realty and DLF to rally further.