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.
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