Buy Indian Hotels Company, target Rs 170: Ashish Chaturmohta

Ashish Chaturmohta

On the long-term monthly charts, Indian Hotels Company has major W-shaped bottoming pattern seen between Rs 135 and Rs 30 odd levels over a period of the last ten years.

In the month of January, the price breakout was seen from the pattern to touch an all-time high of Rs 161 levels and then corrected down to Rs 125 levels where it found support at 100-day moving average.

The recent correction from Rs 156 levels has again found support at 100-DMA and the stock has witnessed a bounce back in the last session. Rallies in the stock have been on good volumes and decline on below-average suggesting market participants holding on the stock.

Thus, the stock can be bought at current level and on dips up to Rs 142 with a stop loss below Rs 137 and a target of Rs 170 levels.

Disclaimer: The author is Head Technical and Derivatives, Sanctum Wealth Management. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.