April is shaping up to be a dynamic month for investors, with significant developments impacting the global markets. On April 7, 2025, news surrounding U.S. tariffs sparked fluctuations across international financial landscapes. However, Indian stocks initially dipped before rebounding impressively, soaring from 22,400 to 24,300 within a mere two-week span. This remarkable recovery can be attributed to the Reserve Bank of India (RBI)‘s decision to lower interest rates on April 9, which bolstered investor confidence and helped stabilize market prices. Key sectors, especially real estate, automotive, and finance, are beginning to show promising signs of recovery, hinting at a bright future for the real estate market.

Oberoi Realty: Potential for Recovery After Significant Decline

Oberoi Realty has experienced a steep decline of 38% from its December 2024 peak, where shares plummeted from ₹2,343 to ₹1,451. Recent trading activities, however, indicate an early reversal trend, suggesting that investor interest may be rekindling, and the stock could be on the verge of an upward trajectory.

Indicators Suggesting a Bullish Reversal for Oberoi Realty

• Double Bottom Formation: The stock has formed a classic "double bottom" pattern, often signaling an impending price increase.
• Support Above 50-Day Moving Average: Following its downward trend, the stock has found support and is currently trading above its 50-day moving average, a strong indicator of a potential trend reversal.
• Increasing Trading Volume: A rise in trading volume as the stock price climbs indicates growing investor participation, pointing to a substantial trend change.
• Strengthening RSI Momentum: The Relative Strength Index (RSI) has surpassed the 60 mark, reflecting bullish momentum and the likelihood of continued price appreciation.

Outlook for Oberoi Realty

Oberoi Realty had an impressive 195% return from April 2023 to December 2024, but has since faced a decline from ₹2,345 to ₹1,450. Nonetheless, encouraging signs are appearing. The formation of a double bottom pattern and the stock’s position above the 50-day moving average signal a possible recovery. Additionally, the 14-period RSI indicates strength, suggesting that Oberoi Realty may soon embark on an upward journey.

DLF: Signs of a Recovery After Recent Corrections

Similarly, DLF has undergone a 33% drop from January 2025 to March 2025 but is now showing early signs of a recovery. Bullish indicators on the daily chart imply that the previous upward trend may resume, marking the beginning of a recovery phase.

Key Technical Indicators Supporting DLF’s Reversal

• Breakout from Falling Channel: DLF has successfully broken out of a falling channel pattern, reinforcing the likelihood of a trend continuation.
• Support Above 50-Day Simple Moving Average: The stock’s ability to maintain its position above the 50-day SMA post-correction is a classic bullish signal.
• Volume Surge: The concurrent rise in both price and trading volume confirms strong market participation, validating bullish momentum.
• Strengthening RSI Momentum: The 14-period RSI has crossed the 55 threshold, indicating bullish divergence and potential for further gains.

Outlook for DLF

DLF achieved an impressive 187% return from March 2023 to March 2025; however, it recently faced downward pressure, with prices declining from ₹896 to ₹601. Despite this setback, technical indicators are hinting at an impending recovery. The breakout from a key bullish pattern, coupled with rising volumes and a strengthening RSI, suggests that DLF could be on the brink of an upward movement.

Final Thoughts

Both Oberoi Realty and DLF are exhibiting robust technical signals that could indicate a bullish trend in the real estate sector. These stocks are establishing bullish chart patterns, displaying strengthening RSI readings, and achieving significant breakouts, all of which imply increasing momentum and a positive outlook.

With the RBI’s recent rate cut, the real estate sector stands to benefit from enhanced affordability and improved market sentiment, making these stocks increasingly attractive. As interest rates decline, the demand for housing and real estate investments is likely to surge, offering additional support for potential upward movements in these stocks.

Disclaimer

This article serves solely to provide insights and data points for educational purposes and does not constitute investment advice. Readers are encouraged to consult with a financial advisor before making any investment decisions.

Note: The author does not hold any positions in the stocks mentioned. Clients of Jainam Broking Limited may have vested interests in these securities.

Kiran Jani, a seasoned trader and technical analyst with over 15 years of experience in India’s financial markets, currently leads the Technical and Derivative Research Desk at Jainam Broking Limited.