Sizzling Stocks - Indian Hotels Co. (Rs 66.3)



The stock fell 5.5 per cent, accompanied by extraordinary volumes on Friday following its bid to buy Orient-Express Hotels. The shares of Orient-Express surged 23 per cent to close at $11.05 in New York trading. After encountering resistance at Rs 71, Indian Hotels fell. This downward reversal is triggered by negative divergence in daily relative strength index as well as daily price rate of change indicator.

The stock can decline to its immediate support at Rs 63. A decisive fall below this level will pull the stock down to Rs 59 in the short-term. Strong decline below Rs 59 will mar its medium-term uptrend and drag the stock down to Rs 53 and 55 band in the medium-term.

On the upside, the stock has to decisively break through its key resistance at Rs 71. In that scenario, the stock can trend upwards to Rs 77 and to Rs 85 in the forthcoming months. Subsequent, important resistance is positioned at Rs 90.

Persistent Systems (Rs 465.1)

On Friday, the stock jumped 11 per cent intra-day to mark its 52-week high of Rs 476, after the company announced robust results. Its net profit increased 37.8 per cent and revenue jumped 37.2 per cent over the corresponding quarter a year ago.

The stock finished the week with almost 9 per cent gains.

It has been on an intermediate-term uptrend from its September 2011 low of Rs 280. Medium as well as short-term trends are also up for the stock. It has key resistance at Rs 480. A decisive jump above this level will take the stock higher to Rs 507 in the ensuing months.

Immediate support is at Rs 440. A fall below this support can drag the stock down to Rs 418 levels. But a strong tumble below Rs 400 will mitigate the stock's medium-term uptrend and pull it down to Rs 376 or even to Rs 350 in the medium-term.

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