Stocks belonging the Realty sector has been down and nearly out since the fall we saw in 2008. Of course, this has changed little on the ground where property prices continue to appreciate making it even more of a conundrum of what is ailing real estate stocks. While debt overhang remains for many, many companies which have not been troubled by Debt too have seen either flat returns (over multiple years) or worse a decline compared to its all time high.
But over the last week, some realty stocks seem to have finally found some foot hold and today saw continuation of the same (though we saw a strong decline towards the end indicating that the turnaround will not be as easy as one assumes).
DLF had a sharp rise mid-day and while we saw a reaction towards the end of the day, the stock has still closed above a crucial resistance level of 173. As can be seen on the charts, this is a level that has been tested multiple times in the past and this augurs well for the stock. Today’s rise has not come with much volumes though which remains pretty low compared to what taking out of a major level should generally showcase. But despite all this, one needs to keep a strong eye on this stock since the next major resistance level if 75 points away from the current level.