Trading ideas by HDFC Securities: Buy Indian Hotels, United Breweries

The stock price of Indian Hotels has broken out from its three-week-long consolidation

Nifty outlook
 

On June 22, Nifty hit a high of 15,895, and failed to register a new all-time high above 15,901, which was seen on June 15, 2021. The primary trend of the Nifty is still bullish and longs should be kept with the stoploss at 15,600. Above 15,901, Nifty could extend the rally towards 16,200 level.

Stock recommendations

Buy INDIAN HOTELS (Rs 139.90): | Target: Rs 155 | Stop-loss: Rs 130

The stock has broken out from its three-week-long consolidation. On June 22, 2021, the stock surged more than 4.5 per cent with jump in volumes. The stock price has closed above the previous top resistance of 139. Besides, hospitality sector has started getting traction in the last one month. Indian Hotels is one of the best placed stocks from the hospitality sector, technically. The stock is placed above all important moving averages, indicating bullish trend on all time frame. Indicators and oscillators have turned bullish on weekly and monthly charts

Buy UBL (Rs 1,468): | Target: Rs 1,560 | Stop-loss: Rs 1,410

The stock has registered a fresh all-time high with rising volumes. Liquor and beverage stocks have been performing well for the last one month. Besides, the stock has recently broken out from “flag” pattern on the daily chart. The primary trend of the stock has been bullish and it has been forming higher tops and higher bottoms on the daily and weekly charts. Moreover, the stock is placed above medium to long term moving averages, indicating bullish trend on all time frames. Indicators and oscillators on weekly and monthly charts have turned bullish.

---

Disclaimer: Vinay Rajani is a Senior Technical and Derivative Research Analyst at HDFC Securities. The analyst doesn't have any holding in the stock. Views are personal