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Three per cent surge in the stock of Indian Hotels Company on Tuesday with good volume has strengthened the its short-term uptrend. Investors can buy the stock at current levels.
Following a medium-term downtrend, the stock found support at ₹103 in late August this year. This support level provided base for the stock in the months of September and October, before commencing a short-term uptrend. In late November, the stock emphatically breached a key resistance as well as the 200-day moving average at around ₹115. The stock trades well above its 50 and 200-day moving averages.
After witnessing a volatile movement, the stock appears to have resumed its short-term uptrend. The daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering the bullish zone. Both the daily and weekly price rate of change indicators feature in the positive territory implying buying interest.
The stock can extend its uptrend and hit the price target of ₹128.5 and ₹131 in the short term. Traders can buy the stock with a stop-loss at ₹120.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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