Chart Check: Indian Hotels gave a channel breakout to hit fresh record highs; should you buy or book profits?
India Hotel Ltd, part of the hotel & resort industry, hit a fresh record high after a breakout from a channel formation in the last week of August.
Short-term traders can look to ride the momentum for an upside target of Rs 465 in the next 3-4 weeks, suggest experts.
The stock has been moving in a range since June 2023 where levels around 400 acted as a stiff resistance on the upside while support was seen above 350 levels on the daily charts.
It witnessed a breakout from the consolidation range on 30 August 2023 and since then the stock has been moving in an upward trajectory. The stock has been making higher highs and higher lows for the last 3 weeks.
The stock also climbed above the 50-DMA on 30 August 2023 which suggests that the short-term momentum is on the upside.
The stock hit a record high of Rs 436 on 7 September 2023.
In terms of price action, the stock is trading well above most of the crucial short- and long-term moving averages such as 5,10,30,50,100 and 200-DMA on the daily charts which is a positive sign for the bulls.
The daily Relative Strength Index (RSI) is placed at 69.4. RSI below 30 is oversold and above 70 is considered overbought, Trendlyne data showed.
The daily MACD is above its center and signal Line, this is a bullish indicator.
“Indian Hotel is trading at all-time highs and gave a channel breakout above 410 zones after thirteen weeks. It formed a strong Bullish candle on the weekly scale and retested the previous resistance zone on a daily scale,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.
“The stock has given a fresh consolidation breakout after four sessions on a daily scale with noticeable volumes.
