Indian Hotels

We recommend a sell in Indian Hotels Company from a short-term trading perspective. It is evident from the charts of Indian Hotels that after recording a 52-week low of Rs 34 in early March it was on an intermediate-term uptrend till early June peak of Rs 82. However, after encountering a key resistance at Rs 80, the stock made few attempts to surpass the resistance and failed. The stock changed its trend and has been on a medium-term downtrend since early June. On July 3, the stock decisively broke through the intermediate-term up-trendline by tumbling 7 per cent. Later on the stock breached a support at Rs 60 and is hovering way below its 21- and 50-day moving averages. The daily relative strength index has entered the bearish zone and weekly RSI is falling in the neutral region. The daily moving average convergence and divergence indicator have entered the negative territory reinforcing the bearishness. Our short-term outlook is bearish on the stock. We expect it to dive until it hits our price target of Rs 52. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 61.

via BL