Realty as a sector will be the flavor of September: Epic Research

Mr. Mustafa Nadeem, CEO, Epic Research

Nifty reclaims the 9900 mark after three weeks as lower level buying along with positive global cues uplifts the investor's sentiment. Despite a dismal GDP data which was quite lower due to structural policies affect, Nifty managed to hold on the 9700 mark at lower levels along with less than average rollovers for September series. On weekly Chart after two indecisive candles, a positive close with a Hammer pattern is promising for bulls while bears may feel trapped for a short term since undertone is bullish. In coming days, a follow-up buying in current momentum may extend the levels towards 10090 - 10120 which are critical in nature while a midterm support is established 9910.

For September series lower than average rollover figures at 55% vs 72% does point a different direction though overall momentum is seen building up and we may see further September series data to validate the levels. Though range which was 9700 - 9900 is now shifted to 9800 - 10100 but Nifty may need a lot of strength to cover up the distance. As per sectors, we believe strong buying is seen in Metals while FMCG was also a major contributor. Realty as a sector is also looking for a breakout and we believe it will be the flavor of September, especially, IB Real estate and DLF.

The strategy for investors in September should be Buy on dips if we are able to hold 9750 - 9700 odd levels while we see momentum to pick up once we breach the wall of 10100. Our view will negate in case a close below our supports are seen. That will be point of Stop and reverse for lower levels of 9400 - 9450.

Source : Equity Bulls

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