Indian Hotels

We recommend a sell in the stock of Indian Hotels from a short-term trading perspective. This stock is in a downtrend since the January 15 peak of Rs 109.5. It recorded a sharp decline in the second half of January and the stock finally bottomed at Rs 85 on February 5. Though the stock is attempting to stabilise itself since this trough, the bounce from this level lacks conviction. The fact that the stock is unable to move above the immediate resistance at Rs 94.5 implies that it can decline in the days ahead. The oscillators in the daily chart are still in the bearish zone and struggling to move out of it. The stock is also trading below its 50-day moving average. We expect the stock to decline till it hits the targets of Rs 85 or Rs 80. Short-term investors can sell the stock with the stop at Rs 95.

via BL