Traders with a short-term perspective can buy the stock of EIH at current levels. The outlook is bullish. The 5 per cent rise on Monday indicates the beginning of a new leg of rally in the stock. Immediate support is at ₹228. Below that the region between ₹225 and ₹220 is a strong support from where the stock has risen well on Monday. Cluster of moving averages are poised in this region.
EIH share price can rise to ₹275 over the next three-four weeks. Short-term traders can go long now. Accumulate on dips at ₹229 and at ₹226. Keep the stop-loss at ₹218. Trail the stop-loss up to ₹238 when the price touches ₹243. Revise the stop-loss further up to ₹248 when EIH share price moves up to ₹253. Exit the long positions at ₹260.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)