IHC, Mahindra Holidays: Time to check-in hotel stocks this holiday season?

Hotel stocks are seeing healthy accumulation with select stocks eyeing up to 35 per cent jump this travel season

With no Covid-19 related restrictions in place this year, hotel stocks are expected to gather steam during the upcoming holiday season. Stocks like Kamat Hotels, Taj GVK Hotels, Speciality Restaurants, and Oriental Hotels gained between 1 per cent and 5 per cent in the intra-day trade on Monday even as benchmark indices remained muted.

Since 2021, investors have been checking into hotel stocks as revenge travel boosted sentiment to a great extent. Major stocks have reached historic peaks with volumes witnessing significant additions.

So far in calendar year 2022, Royal Orchid Hotels shares have delivered tripled-digit returns, helping the stock to surpass its all-time high hit in 2006. Shares of Speciality Restaurants, Oriental Hotels, and Kamat Hotels India, meanwhile, have doubled since the start of the current year. 

Similarly, Indian Hotels Co, Taj GVK Hotels & Resorts, and Mahindra Holidays & Resorts, too, have gained 89 per cent, 68 per cent and 52 per cent, respectively, during the period. 

Most hotel stocks have seen a healthy accumulation in their corrective decline this year, with sell-off being, inevitably, absorbed at key support levels. Against this backdrop, here's a technical outlook of hotel stocks to glance on their next move: 

Royal Orchid Hotels Ltd (ROHLTD)

Likely target: Rs 350 and Rs 375

Upside potential: 16% to 25%

While the shares of Royal Orchid Hotels are struggling to resolutely overcome the hurdle of Rs 300-mark, the underlying trend remains positive. The immediate cushion of Rs 250 continues to bolster the positive bias. A breakout over Rs 300 level would lead to fresh upside towards Rs 350 and Rs 375 levels. CLICK HERE FOR THE CHART

Indian Hotels Co. Ltd (INDHOTEL) 

Outlook: Breakout could see 14% upside.

There is a bearish formation of "Double Top" on the daily chart of the Indian Hotels Co. symbolizing weakness beneath the neckline of Rs 300 levels. Thus, until this support mark is defended, the positive reversal could again see the stock resuming its upward trend. Furthermore, a breakout over the high of Double top, which, in this case, is Rs 348.45, could trigger a bullish upside towards Rs 400 levels. CLICK HERE FOR THE CHART

Oriental Hotels Limited (ORIENTHOT)

Likely target: Rs 110

Upside potential: 35%

Shares of Orient Hotel are trading upwards with a resolute texture of "Higher high, higher low" pattern. This momentum has led stock to perform better in recent times. The immediate support comes at Rs 77, followed by medium-term cushion at Rs 70. The stock's momentum is exhibiting a trend towards Rs 110 levels. CLICK HERE FOR THE CHART

Mahindra Holidays & Resorts India Ltd (MHRIL)

Outlook: Hurdle at Rs 290

Post hitting record peak of Rs 313.60 in September this year, shares of Mahindra Holidays have remained subdued. At the current juncture, the stock is struggleing to overcome the hurdle of Rs 290, as per the daily chart. When this mark gets leaped over, the trend would see fresh highs in the stock. Until then, the support of Rs 250 needs to be watched for any weakness in the trend. CLICK HERE FOR THE CHART

Speciality Restaurants Ltd (SPECIALITY)

Outlook: Needs to hold the support of 100-DMA.

Since September 2022, the trend of the stock has tilted downwards, with price action witnessing sell-off on every positive reversal. This indicates resistances at subsequent higher levels, which needs to be overcome to resume the robust upward trend. To make that happens, the stock needs to decisively hold the support of 100-day moving average (DMA) set at Rs 200.50 mark. Immediate barriers come at Rs 220 and Rs 238 levels. The next support comes at Rs 169, its 200-DMA. CLICK HERE FOR THE CHART