Indian Hotels Company

We recommend a buy on the Indian Hotels Company stock from a short-term trading perspective. After recording a 52-week low at Rs 34 on March 12, the stock began to trend up. It has been on a medium-term uptrend since the March low. After crossing its 50-day moving average, the stock witnessed a sharp rally during the first week of April. However, it encountered resistance at Rs 55 and is consolidating sideways. On May 4, the stock resumed its uptrend by gaining almost 9 per cent, accompanied with good volume. The stock is trading well above its 21- and 50-day moving averages. The daily relative strength index (RSI) has re-entered the bullish zone from the neutral region. We are bullish on the stock from a short-term perspective. We anticipate it to break through the resistance at Rs 55 and rally until it hits our price target of Rs 60 in the near future. Traders with short-term trading perspective can buy the stock while maintaining a stop-loss at Rs 50.5 level.