Reliance Industries Ltd (RIL), Oberoi Realty and Godrej Properties stocks may rally over 20 per cent in the coming three months, analysts at ICICI direct Research said.
Reliance Industries Ltd (RIL), Oberoi Realty and Godrej Properties stocks may rally over 20 per cent in the coming three months, analysts at ICICI direct Research said. The new consumer businesses, Jio and retail are likely to be growth drivers for the oil-to-telecom conglomerate in the coming years. While the Realty sector has been gaining upward momentum after underperforming over the past decade. Within the sector, the brokerage firm favors Oberoi Realty and Godrej Properties as they are witnessing structural turnaround as they are on the verge of multi-year range breakout after forming a higher base above their long term 200 days EMA. Also, both the stocks have robust price structure and improvement in relative strength ranking.
Stocks to buy
Reliance Industries Ltd: The brokerage firm has a given target price of Rs 2,490 apiece with a stop loss of Rs 2,010, implying an upside of 14 per cent. ICICI direct Research said that RIL share price is resolving out of eight month’s long higher base formation signaling end of a corrective phase and resumption of new uptrend, thus offering a fresh entry opportunity. “We expect the stock price to surpass its lifetime highs of Rs 2,369 and head towards Rs 2,490, which is 123.6% external retracement of its September 2020-March 2021 decline (Rs 2369-1830),” the analysts at the brokerage firm said.
RIL’s traditional business will keep generating cash flows as the macroeconomic situation continues to improve. The domestic brokerage believes that the company has a strong balance sheet post raising of funds which is a positive. Growth in retail and digital services coupled with improvement in O2C performance will drive the operating performance going forward.
Oberoi Realty: Oberoi Realty has a target of Rs 730 apiece, with a stop loss at Rs 555, translating to a 21 per cent rally. Within the realty sector, Oberoi Realty has posted faster retracement of past 3-year consolidation indicating a structural turnaround. “The stock has strong support around Rs 550 levels as it is 80 per cent retracement of recent up move ( Rs 522-634),” analysts said. Domestic brokerage is positive on Oberoi Realty as strong sales volume continued to surprise, more so the new launches’ traction. “While Q1FY22 will be a washout, we expect sales momentum in FY22 to be as robust as FY21, driven by new launches in Thane, GSK Project and subsequent phases of Borivali/Goregaon,” it added.
Godrej Properties: It will take Godrej Properties to jump 15 per cent, to reach the target of Rs 1,570 apiece pegged by the brokerage firm, with a stop loss at Rs 1,270 apiece. On technical charts, Godrej Properties has formed a higher base above its 200 Days EMA, which has been held since June 2020 coincided with multi-year breakout area of Rs 1200, highlighting elevated buying demand that augurs well for the next leg of up move. “On the oscillator front, the weekly 14 period’s RSI has generated a bullish crossover above its 9-period average, thus validating positive bias,” it added.
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