The Indian Hotels Company Ltd (INDHOTEL.IN)
This hospitality stock has formed its bottom in June and is in the process of confirming it by moving past the crucial 200-DMA, to which it has presently resisted. If this level is taken out, we may see this stock extending its gains going ahead.
The stock showed strong accumulation in the price zone of 62-70 and has marked a bottom in this zone. Post the formation of a bottom, the price action has seen a breakout for multiple times following area pattern formations.
A few signs have emerged which point towards likely resumption of an up move in the price. The preces are currently in a falling channel post resisting to the 200-DMA, which currently stands at 100.85.
The daily MACD is bearish, but the narrowing slope of the histogram suggests likely positive crossover in the coming days. The weekly MACD is in continuing buy mode. The RSI has broken out of a falling channel by penetrating the falling trend line. It has broken out from the channel well ahead of the price.
Ahead of the breakout, the OBV (On Balance Volume) has marked a fresh high; this acts as a confirmation on the volume front.
If the price action resolves in the intended direction, the stock may test the 110 and 115 levels over the short- to medium-term. If the price falls below 90, it will negative this reading.
Milan Vaishnav, CMT, MSTA
Consulting Technical Analyst | www.EquityResearch.asia | Sebi Regd. No.: INH000003341