Indian Hotels, Lemon Tree: Time to buy hotel stocks as operations resume?

Hotels, restaurants, malls, and places of worship reopened on Monday after 75 days of Covid-19 triggered lockdown, but amid observing social-distancing norms and a palpable sense of nervousness about the challenges ahead. However, malls will remain shut until June 30 in Maharashtra, Rajasthan, Odisha, Jharkhand, Tamil Nadu, Manipur, Meghalaya, Dadra & Nagar Haveli, Daman & Diu, and Haryana’s Gurugram and Faridabad.

Most hotel-related stocks gained ground in this backdrop, with Indian Hotels, EIH Ltd, Lemon Tree Hotels, TAJ GVK Hotels and Speciality Restaurants rallying up to 5 per cent.

So, are these stocks a good bet as they open doors for business? Here's what charts suggest.

Indian Hotels Co. Ltd (INDHOTEL): As this counter trades above the 50-days moving average (DMA), the price rise has not met with major resistance. Every upside has seen buying emerge and this may continue. The stock has a strong support at Rs 85.50 levels and looks to be headed towards Rs 103, which is its 100-DMA.  CLICK HERE FOR THE CHART
 
Lemon Tree Hotels Ltd (LEMONTREE): The stock has seen continuous upper circuits and this may continue for a few more sessions. The Relative Strength Index (RSI)  has just entered oversold condition trading at 72 value, however Moving Average Convergence Divergence (MACD) crossed the zero line upward in the last two sessions. One can expect a mild profit booking, which may see buying momentum come back agian given the support shown by the MACD. The trend remains upward till Rs 20 is held decisively. CLICK HERE FOR THE CHART

EIH Limited (EIHOTEL): The daily chart indicates a formation of “Double Bottom” with a neckline breakout at Rs 83 levels. The overall trend suggests that the neckline may get conquered, as the MACD crossed the zero line with volumes increasing exponentially. The counter is well placed above the 50-DMA placed at Rs 68.70 levels, which will act as a support after the immediate level of Rs 74. CLICK HERE FOR THE CHART

Oriental Hotels Ltd (ORIENTHOT): The counter needs to see follow-up buying for the stock to gain further momentum. It did witness massive buying in the last week with volumes crossing 4-lakh shares on certain days. This needs to continue for the current week, and only then the stock may rally towards Rs 29.30, which is its 200-DMA. The support remains at Rs 21 levels. CLICK HERE FOR THE CHART

Speciality Restaurants Ltd (SPECIALITY): The scrip is facing a challenge to cross its 100-DMA located at Rs 41.90 . The overall trend, however, looks promising as the gap-up sessions are still held with positive momentum. The support remains at Rs 35 levels. If the counter manages to conquer 100-DMA, then it may see a rally towards Rs 50 and then Rs 55 levels.  CLICK HERE FOR THE CHART