Thomas Cook, BLS International: How to trade these travel-related stocks?

The weekly chart of Thomas Cook shows a consolidation breakout above Rs 40, indicating a positive outlook from a medium-term scale

After suffering a lull, on account of the Covid-19 restrictions, those in the travel business are looking to bounce back on the back of a pent-up demand from domestic travellers during summer vacation.

The trend offers some succor to the tourism sector that saw business getting scorched by the pandemic. MakeMyTrip, for instance, is noticing up a 70 per cent rise in daily holiday bookings for the upcoming summer compared to bookings made for the winter in 2020. READ MORE

Given this, is it a good idea to buy travel-related stocks now? Here's what charts say.

Thomas Cook (India )(Thomascook): The weekly chart shows a consolidation breakout above Rs 40, indicating a positive outlook from a medium-term scale. Now, the immediate resistance comes at Rs 60 and if that resistance gets conquered, the upside bias may see a rally towards Rs 80, which is its 200-weekly moving average (WMA). The sustainability above the 100-WMA, currently placed at Rs 53 levels, will decide if the stock regains positive momentum.  CLICK HERE FOR THE CHART
 
Trans Corp International Ltd (532410): The current scenario shows a consolidation in the range of Rs 12 to Rs 8 levels, as per the weekly chart. Although, the volume has shown a substantial jump in recent months, the stock price has failed to move in one particular direction. One can expect a rally of Rs 4-5 on the breakout. The RSI has a support of 40 value, and if that breaks, then the counter may see downside breakdown, as per the weekly chart. CLICK HERE FOR THE CHART
 
BLS International Services Limited (BLS): The counter is witnessing selling pressure at 200-WMA, currently placed at Rs 126 levels. So, unless the counter absorbs the selling pressure from Rs 126 to Rs 130 mark, the upside bias is going to see weakness. Upon conquering the resistance, the rally may see an upside towards Rs 160 levels. The closing basis support comes at Rs 100 levels. CLICK HERE FOR THE CHART
 
International Travel House Ltd (500213): The counter is attempting to conquer the resistance of Rs 66 levels, as per the weekly chart. The recent upside above the resistance has seen enormous volume, yet the stock price is not showing required sustainability. On the downside, the support comes at Rs 48 levels. Going forward, if the counter manages to sustain above the Rs 66-mark, the upside breakout may see a rally towards Rs 85 to Rs 90 levels. CLICK HERE FOR THE CHART
 
VMV Holidays Ltd (539222): The counter is in a bearish trend and may continue to trend in a negative bias below the resistance of Rs 18 levels. Only after crossing Rs 18 levels, the counter may gradually regain momentum. The overall trend is weak and market participants may opt to stay on the sidelines, till it does not conquer Rs 18 mark, as per the weekly chart. CLICK HERE FOR THE CHART