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The stock of The Indian Hotels company has been moving across a sideways trend since the beginning of the year 2021. That is, it has largely been trading within the range of ₹118 and ₹132. But in mid-March, the scrip breached the lower end of the range of ₹118 and dropped to ₹94 levels. The breach of the support at ₹100 turned the outlook negative for the stock. However, the bulls regained control soon and pushed the stock upwards of the important level of ₹100.
The up-move continued and consequently it moved past the hurdle at ₹132 in the first week of May. The rally continued and it broke of the resistance at ₹150. This reinforces the uptrend, and the likelihood of further rally is more. Corroborating the positive inclination, the relative strength index and the moving average convergence divergence indicators on the daily chart is hovering in their respective bullish territory. Also, yesterday’s breakout is accompanied by good volume. Hence, traders can buy with stop-loss at ₹148 for a target of ₹159.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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