Buy DLF on dips: Amit Goel

Amit Goel, Director, PACE Stock Broking Services in an interview with ET Now talks about DLF.

A take on DLF. Do you see the real estate market as a whole picking up and then DLF in terms of realisation is picking up for that particular company, management is fairly positive earlier on they have made announcements on the real estate market particularly in Mumbai has also been picking up. Do you think that probably taking a play right now would be prudent may be for the next few quarters if not very short term?

Yes, I think I agree with you. DLF is looking positive if one takes a 2 to 4 month horizon but in the immediate future since we are probably headed for a correction at least that is what our opinion is that market in the next 3 to 4 week is looking vulnerable to a 5% to 7% kind of a correction and real estate stocks being high beta stocks.

DLF can certainly correct but I do not see it going down substantially below 340 so I guess the strategy on DLF could be buy on dips because the real estate market is actually holding up rather well. The prices in metros residential prices particularly they have been on an upswing and they have kind of plateau now but still that gives enough room for real estate companies to sell residential products at a decent margin so I guess fundamentally speaking real estate sector is looking positive for the next few months but probably the strategy should be to buy on dips rather than really buy aggressively right now.