Is it Time to Buy the Dip in Realty Stocks?

Dec 7, 2021

Brijesh Bhatia, Research analyst

Real estate stocks have ben among the most hated in the market for more than a decade.

But the situation has changed.

Today, realty stocks are among the best bets in the market and I'm very bullish on the sector.

In this video, I'll show you why going long in realty stocks is a good idea.

In the comments let me know what you think about these stocks.

Hello viewers. Welcome to the Fast Profits Daily. Myself Brijesh Bhatia.

In this video we are discussing one sector which you should buy in this market dip. Well, the Nifty has collected right from 18,600 back toward 16,800 levels and this is the one sector which is outperforming since the start, I would say not the start, but the first quarter of 2021, and the sector is Nifty Realty.

 

If you look at the chart over here, the blue line is the index and if you look at the orange line, it is the Nifty. And if you look at the outperformance, it has been amazing. Since it has started the outperformance it is continuing its outperformance against the Nifty and I believe this outperformance will continue.

Get Full Details: Richa is Very Bullish on This Smallcap Stock

If you remember, we have done a video on the realty sector as well, which broke out of 10 years of consolidation. Just look at the chart over here.

 

This is again the similar chart which we have been discussing in previous videos as well and if you look at this chart over here, the consolidation of 10 years a decade of consolidation right from 2011 to 2021, it consolidated in a narrow range. And once the consolidation was broken out, you know, once the people come out the jail of any other punishment, the life changes and they see the new life in them.

Similarly, I believe realty is one sector which is changing the life of investors and I believe the market dip, the recent dip, this sector is one we should invest into the stocks.

Again stocks might differ from investor to investor but if you look at this sector, I believe this sector still as a huge room to go up. This sector has also corrected from the higher levels, and I think you should not miss this opportunity of buying into the realty stocks.

Now, if you look at the consolidation again, it's been a decade long, and the momentum has been very, very strong.

 

But if I just look at the daily chart where the retracement has happened, since the break out, every time this index has tested hundred days average, it went on to the higher side.

If you look at the orange line, it was the 100 days average. So I believe the momentum is still into the bulls court and this dip is an opportunity to go long on to the realty space.

As an investor, the sector which is outperforming and breaking out of a huge consolidation, a multi years consolidation will never give up so early.

Once we have seen in 2017-18, it broke out from the range, it went on back to the lower levels, but in this case, it broke out, it retested, and when we have the previous video, I have clearly mentioned that the retest is a good opportunity to long.

Since then we have also released a special report in our product onto the realty space that it is my 2 stocks on the revival of the realty index and we booked profit on 45-50% on each of the stocks.

I still believe this is a dip and as an investor you should not miss this opportunity to go long on the realty space. Again as I said stocks might differ from investor to investor but I believe 2022-2023 as well, realty is a and huge opportunity.

We have seen, the realty prices have not yet increased much. The numbers have been slightly sluggish. The registrations now in 2021, they are slowly and steadily picking up and they are back towards 2019 level.

So again, 2020 was exceptional into the history books, as I said, and most of the sectors suffered over there but back towards 2019 levels, in 2021 is again a huge opportunity over there for realty space. The mindsets are changing from a budget houses to premium houses in the metros. The rates are slowly and steadily picking up into the realty space as well be commercial, be residential.

This sector you should not miss for next 1 to 2 years. So take this dip as an opportunity into the markets and try to invest as much as you can to the realty space. So signing off and do not forget to click onto the subscribe button and click onto the bell icon so that you receive the notifications and do comment on how you think our videos are helping you.

Signing off, Brijesh Bhatia.

Warm regards,

Brijesh Bhatia
Brijesh Bhatia
Research Analyst, Fast Profit Report
Equitymaster Agora Research Private Limited (Research Analyst)

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