Analyzing India

Time to Enjoy the Hospitality Of This Stock for the Medium Term


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 | | Sebi Regd. No.: INH000003341

Milan Vaishnav
About the author: , CMT, MSTA is a qualified Independent Technical Research Analyst at his Research Firm, Gemstone Equity Research & Advisory Services in Vadodara, India. As a Consulting Technical Research Analyst and with his experience in the Indian Capital Markets of over 15 years, he has been delivering premium India-focused Independent Technical Research to the Clients. He presently contributes on a daily basis to ET Markets and The Economic Times of India. He also authors one of the India's most accurate "Daily / Weekly Market Outlook" -- A Daily / Weekly Newsletter,  currently in its 15th year of publication. Milan's primary responsibilities include consulting in Portfolio/Funds Management and Advisory Services. His work also involves advising these Clients with dynamic Investment and Trading Strategies across multiple asset-classes while keeping their activities aligned with the given mandate. Learn More
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