IHCL, Kamat: Hotel stocks at 52-week high; check out the trading strategies

Shares of hotel companies will be in spotlight following their stellar rallies to claim historic high. In particular, Indian Hotels Co. has soared 18 per cent since the start of the current year, despite benchmark indices undergoing extreme volatility. 

Shares of Kamat Hotels India are on the course to double this year, while Royal Orchid Hotels and Oriental Hotels have both gained 30 per cent each.

On Tuesday, Indian Hotels Co hit a new historic peak, while Kamat Hotels India set a fresh 52-week high.

Here’s the technical outlook amid major hotel stocks clicking significant peaks:-

Indian Hotels Co. Ltd (INDHOTEL) 

Likely target: Rs 430

Upside potential: 15%

Shares of Indian Hotels continue to scale “Higher High”, in the overbought category of the Relative Strength Index (RSI), suggesting a resilient momentum that is able to absorb any sell-off, shows the daily chart. The stock is rising in a gradual phase, implying sustainability and build of supports at key intervals.

As long as the stock defends the crucial support of Rs 350, the trend for the medium-term poised for higher levels of Rs 430, as per the weekly chart. CLICK HERE FOR THE CHART

Kamat Hotels India Ltd (KAMATHOTEL)

Likely target: Rs 220

Upside potential: 15%

Shares of Kamat Hotels India hit a new 52-week high on Tuesday, with aggressive chart structure. The recent move has appeared post forming a minor consolidation in the range of Rs 180 to Rs 160 levels, as per the daily chart. 

The stock has produced a medium-term bullish breakout, intending to rally in the direction of Rs 220 levels. The support for the stock exists at Rs 180, which needs to be adhered on the closing basis.  CLICK HERE FOR THE CHART

Royal Orchid Hotels Ltd (ROHLTD)

Likely target: Rs 385

Upside potential: 10%

Once the hurdle mark of Rs 350 gets surpassed, the counter is set to enter the next leg of upside that is poised to reach Rs 385 levels, as per the daily chart. There is a positive crossover of 50-day moving average (DMA) taking over the 100-DMA, indicative of the positive underlying strength. The support for the upward bias stays at Rs 320 levels. CLICK HERE FOR THE CHART

Oriental Hotels Limited (ORIENTHOT)

Likely target: Rs 110

Upside potential: 20%

The monthly chart of Oriental Hotels shares revel a formation of “Rising Channel” pattern, which is a bullish formation, as per the technical analysis. The stock has a robust support at the lower rising trendline, situated at Rs 78 levels. 

This technical formation clearly demonstrates the bullish intend in the stock, which going forward shall further breakout on the upward trajectory. The stock is headed in the direction of Rs 110. The RSI is witnessing accumulation in the overbought category, implying resilient bullishness. CLICK HERE FOR THE CHART

Mahindra Holidays & Resorts India Ltd (MHRIL)

Likely target: Rs 350 (Once Rs 320 is take out)

Upside potential: 10%

Shares of Mahindra Holidays & Resorts are presently making efforts to absorb all the selling pressure emerging in the range of Rs 320 to Rs 310. Once this range gets overturned, the trend shall emit a next up move towards Rs 350 levels, as per the daily chart.

The support for the current bias stays at Rs 280 level. While the trend may look to be sluggish, the underlying robustness is not fading, shows candlestick formations. CLICK HERE FOR THE CHART