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We recommend a buy in Indian Hotels Company from a short-term horizon. It is clearly evident from the charts of the company that it has been on long-term downtrend from it January peak of Rs 163, forming lower peaks and lower troughs.

However, the stock’s downtrend appears to have ended as the stock recently found support at around Rs 55, which is also a significant long-term support level. After taking support at this level, the stock bounced up gaining bullish momentum. On October 13, the stock surged 4 per cent reinforcing the bullishness.

The daily relative strength index has recovered from the oversold area and the weekly RSI is recovering from that area. We take a contrarian stance on the stock from a short-term perspective and anticipate its current up-move to prolong until it hits our price target of Rs 67 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 56.

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