5 hotel stocks with up to 20% upside potential; check list, details here

Technical charts suggest that share price of ITC Hotels, Indian Hotels, Taj GVK, Lemon Tree and Chalet Hotels could see up to 20 per cent upside from here.

Shares of Hotels were seen buzzing in trade on Wednesday with gains up to 6 per cent even as the benchmark indices witnessed tepid moves.  Lemon Tree surged nearly 6 per cent to ₹157 and was among the top movers. Chalet Hotels, Indian Hotels, Chalet Hotels, EIH, Kamat Hotels and Taj GVK were among the other prominent gainers, up over 3 per cent each.  Analysts attributed the gains at these counters to a likely healthy demand outlook for India's hospitality and tourism industry supported by rising travel demand, increasing domestic consumption, and sustained investment in infrastructure and services. READ MORE  Against this background, here are 5 hotel stocks with up to 19.6 per cent upside potential as per the existing chart patterns. 

5 hotel stocks that may gain in the near-term

ITC Hotels

Current Price: ₹245  Likely Target: ₹274  Upside Potential: 11.8%  Support: ₹234; ₹230  Resistance: ₹248; ₹255; ₹264  ITC Hotels is presently seen testing resistance at ₹245 levels, above which near hurdle stands at ₹248. Break and sustained trade above these hurdles can help the stock rally towards ₹274, with interim resistance likely around ₹255 and ₹264 levels. Support for the stock exists around ₹234 and ₹230 levels. 

 

 

Indian Hotels Company

Current Price: ₹803  Likely Target: ₹900  Upside Potential: 12.1%  Support: ₹789; ₹772; ₹765  Resistance: ₹817; ₹842; ₹870  Indian Hotels stock has witnessed a fresh breakout on the daily scale. The stock is likely to trade on an upbeat note as long as it sustains above ₹789 levels; below which support for the stock exists at ₹772 and ₹765 levels. 

 

    On the upside, the stock can potentially surge to near ₹900-mark. Intermediate resistance for the stock can be anticipated around ₹817, ₹842 and ₹870 levels. 

Taj GVK Hotels & Resorts

Current Price: ₹443  Likely Target: ₹530  Upside Potential: 19.6%  Support: ₹422; ₹410  Resistance: ₹480; ₹500  Taj GVK Hotels is seen testing resistance around its super trend line, which stands at ₹456. With key momentum oscillators favourably placed, the stock can attempt a breakout above the same, and rally towards the calendar year highs around ₹530 levels. 

 

    Interim resistance for the stock can be expected around ₹480 and ₹500 levels. Support for the stock is visible at ₹422 and ₹410 levels. 

Lemon Tree

Current Price: ₹156  Likely Target: ₹182  Upside Potential: 16.7%  Support: ₹149; ₹145  Resistance: ₹162.40; ₹171; ₹176  Lemon Tree is seen attempting a breakout on the daily scale, a close above ₹155.36 shall confirm the same. As such, the immediate next target for the stock seems to be ₹162.40 levels. Break and sustained trade above the same can open the doors for an extended rally towards ₹182 levels, with interim resistance likely around ₹171 and ₹176 levels. Support for the stock is seen at ₹149 and ₹145 levels. 

 

 

Chalet Hotels

Current Price: ₹1,003  Likely Target: ₹1,200  Upside Potential: 19.6%  Support: ₹980; ₹925; ₹885  Resistance: ₹1,064; ₹1,120; ₹1,165  Chalet Hotels stock is seen attempting a breakout on the daily and weekly charts. The near-term for the stock is likely to remain favourable as long as the stock trades above ₹980 levels; below which support for the stock can be anticipated around ₹925 and ₹885 levels. 

 

    On the upside, the stock can potentially surge to ₹1,200 levels. On its way up, the stock is likely to face interim resistance around ₹1,064, ₹1,120 and ₹1,165 levels, suggests the long-term chart.