The real estate sector, which had earlier been on a downward trend, is finally showing signs of recovery over the last six months. After 16 months of decline and price correction, real estate stocks are now positioning themselves favourably to attract investors and traders. Sobha and Phoenix Mills have formed potential reversal patterns, indicating possible opportunities for traders and investors.
Sobha – A bullish reversal breakout
From its peak of ₹2,160 in June 2024, Sobha saw a precipitous 50% drop, falling to ₹1,075 at its lowest point. However, the way the chart is currently set up suggests that there may be a trend reversal and new buying interest.
Key indicators supporting Sobha’s strength:
- Chart Pattern Breakout: The stock has confirmed bullish sentiment by breaking out of important patterns like the descending triangle, double-bottom, and rounding bottom.
- Trading Above 200 SMAs: Sobha is trading and holding above its 200-day SMAs for the first time since October 2024, which may indicate a shift in trend.
- Volume Surge Verifies Breakout: A concurrent rise in price and volume indicates strong participation and validates the upward trend.
- RSI Momentum Strengthening: 14 period A Relative Strength Index above 60 indicates bullish divergence and the potential for further upside,
Outlook: Sobha Limited
Sobha’s stock price was the highest among the stocks in the market with a whopping 430% return from 2023 to June 2024. After that, the correction phase followed and the price fell down from ₹2,160 to ₹1,075. Nevertheless, the early signs of a potential recovery are still there. The price has also crossed over its 200-day Simple Moving Averages (SMAs) for both the short-term and long-term periods, and the increasing volume is considered an important signal of accumulation before the price goes up. These technical indicators suggest that Sobha Limited could be poised for a fresh rally.
Phoenix Mills: A positive reversal is underway
Market signals have begun to appear which indicate a change of stock direction for Phoenix Mills. The daily chart too is already suggesting bullish signals. Thus, Phoenix Mills which experienced a decline of about 35% during the period between August 2024 and August 2025 is now starting to show some signs of recovery.
Key indicators supporting phoenix’s strength:
- Chart Pattern Breakout: The stock has broken out of an inverted head & shoulders pattern & a falling trendline, reinforcing bullish sentiment.
- Volume Surge: A rising market price along with rising volume indicates that substantial accumulation has occurred and thus the price has a confirmed break out.
- Trading Above 200 SMAs: Phoenix Mills is now trading and staying above its 200-day Simple Moving Averages for the first time since October 2024, showing a possible trend change.
- RSI Gaining Strength: 14 period RSI above 60 shows gaining momentum and possible further appreciation.
Outlook: Phoenix Mills
Phoenix Mills experienced a challenging year, with its stock falling from ₹2,070 to ₹1,330. Nevertheless, recent technical indicators suggest a shift in momentum, possibly towards an upward move.
A bullish head-and-shoulders pattern formation indicates a trend reversal. Additionally, the RSI has crossed into the bullish zone, thereby supporting this setup and indicating stronger momentum.
Final take
Sobha Ltd. and Phoenix Mills have already begun displaying their restoration through powerful reversal signals. Chart patterns of both stocks are bullish along with an increase in the RSI, and key technical breakouts indicating that price movement upwards is gaining strength. Despite the market’s fluctuating conditions still having an impact, these stocks have the potential for some upside.
Disclaimer:
Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Kiran Jani has over 15 years of experience as a trader and technical analyst in India’s financial markets. He is a well-known face on the business channels as Market Experts and has worked with Asit C Mehta, Kotak Commodities, and Axis Securities. Presently, he is Head of the Technical and Derivative Research Desk at Jainam Broking Limited.
Disclosure: The writer and his dependents do not hold the stocks discussed here. However, clients of Jainam Broking Limited may or may not own these securities.
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