Oriental Hotels

Investors with medium-term perspective can consider buying the stock of Oriental Hotels (Rs 317). After forming a strong base by moving sideways between Rs 140 and Rs 170 between December 2008 and March 2009, the stock began to trend upwards.



Since then the stock has been on an intermediate-term uptrend, shaping rising peaks and troughs.

Moreover, the medium-term trend is also up from this February low of Rs 239. After many failed attempts, the stock conclusively broke-out of its long-term key resistance level of Rs 300 on July 16 by surging 8 per cent.

We notice that there is an increase in weekly volume over the past two weeks. The stock is trading well above its 21- and 50-day moving averages. The daily as well as weekly relative strength indices are featuring in the bullish zone. Similarly, the 14-day price rate of change indicator is hovering in the positive territory indicating buying interest.

Moving average convergence divergence indicator heading steadily higher in the positive territory backs the stock's rally.

Considering that the stock's intermediate and medium-term up trend-line is intact we are bullish on it from medium-term horizon.

We believe that Oriental Hotels has the potential to move higher to Rs 380 in the forthcoming weeks, with small halt around Rs 350.

Investors with medium-term horizon can buy the stock while maintaining stop-loss at Rs 280.

Follow up- Ahmednagar Forgings (Rs 126.1)

The stock is pausing around our recommended price level with last week's minor decline of Rs 2.6. Our medium-term outlook remains positive for the stock. Medium-term investors can continue to hold with stop-loss at Rs 115 and target of Rs 155.

(This recommendation is based on technical analysis. There is a risk of loss in trading.)

via BL