Well, there is a plethora of variables available for you to check. Of course, it will depend on the focus of your study. For example, if your study will deal more with the biophysical characteristics, I recommend you check on soil water potential (tensiometers), leaf water potential (scholander pressure bomb) and water content of the leaf (easy lab methodology). Other biophysical parameters could be the xylem conductivity http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0006-87052012000400017 you could try this link above to get more information. However, if you also want some chemical responses to the drought condition of the plants you could measure the concentration of the aminoacid proline and also total soluble sugars.
Drought stresses are many times inter related with high temperature and high salt environments. Droughty environments are also many times plagued by alkalinity and micronutrient disbalances.
Correctly defining drought resistance to match your context is critical: Use of transplantability, survival, or post establishment growth may yield different criteria regarding appropriate physiological parameters.
A good thresold for drought resistance is xylem embolism associated to water stress-induced cavitation. There are any papers about this topic, both from a physiological, ecological and also methodological point of view.
Growth, physiological, biochemical and molecular aspects all are suitable and suggested in many publications.
For example, for growth you can check stem and root length, fresh and dry weight, number of leaves, plant visual features, leaf area and biomass production in both control and stressed genotypes.
For physiological and biochemical aspects, you can measure plant water relation (relative water content and leaf water potential), cell membrane stability (electrolyte leakage, lipid peroxidations), rapid drought test (pH), antioxidants (enzymatic and non-enzymatic such as AsA, GSH, phenol components, vitamin E, SOD, CAT, GR, APX, etc., osmolytes such as proline, glycine betaine, carbohydrates; ABA hormone, ions such as K and Ca2+.
I point of my view sap flow is also important in trees.