DLF pulls Realty index up, hits 52-week high

When all the sectors trailed more or less in line with the benchmark indices, it was the Realty index that exuberantly outpaced all other indices by gaining almost 3.7 per cent on a closing basis. Apart from the positive news of Moody's upgrading India’s ratings, the realty sector rallied after the government approved increase in carpet area of houses for the middle income group under the Pradhan Mantri Awas Yojana-Urban. This decision of the Union cabinet would be highly positive for the housing sector and would please home buyers, realty developers and housing finance companies alike.

DLF, which holds 24.8 per cent weightage in the Nifty Realty index, surged as much as 7.2 per cent, thereby pulling the entire index northwards. Technically, DLF has succeeded in breaking multiple resistance breakouts, making a new 52-week high at Rs 225.95 level. Today DLF has given a kind of cup and handle pattern breakout with huge volumes and positive crossover of the 14-period RSI. On a weekly basis, the stock had corrected nearly up to 50 per cent retracement of the prior upward rally and bounced back to hit 52-week high. Overall, the stock continued with its upward rally after a week’s breather. Going forward, the stock holds some more upside potential either on a continuous basis or after a pullback.