The bullish momentum strengthened in the stock of Indian Hotels Company, as it surged 6.4 per cent in the past two trading sessions. The stock’s rally has breached its immediate resistance at ₹103, providing buying opportunity for the traders with a short-term perspective. Since August 2013 low of ₹37.5, the stock has been on a long-term uptrend. Taking support at ₹70 in early May, the stock continued to move higher and has been on a medium-term uptrend as well. This uptrend is backed by good volumes during the advance sessions.
The stock is trading well above its 21- and 50-day moving averages.
The indicators on the daily chart continue to feature in the bullish zone backing the uptrend. Our short-term outlook on the stock is bullish. The stock can continue its upward journey and reach our price target of ₹110 and then ₹112 in the forthcoming trading sessions. Buy the stock with a stop-loss at ₹103.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)