Medium Term Investment : Hotel Leela
We had recommended this Hotel Sector major as a buy in our issue dated 21st Dec 09. This was given as a buy around 43 levels and also on dips towards 41 for a target of 53-55 at first.
This level had a cluster of resistances and once that is crossed to a higher target of 66 / 75 was projected. Looking at the chart we find that prices moved just as we had expected, even capturing the dip levels in the very next day after our recommendation.
Prices covered great distance since then (with over 20% gains) and in Jan 2010 also managed to achieve the first target level near 53. We see that two weeks of strong advance made this a superb outperformer not only in the market but also in the sector like we mentioned before, 53 region has a cluster of resistances and hence the halt as well.
Over here prices have completed one of the important sets of a fractal accumulation pattern on weekly chart. Around this region is also the 50% retracement of the entire primary fall commenced from May 06 top. Therefore unless we see a volume led break above this region, we may see prices consolidating near the highs or moving into a Corrective mode owing to profit booking. But even if there is a dip in coming sessions, the outlook still remains bullish as the prices are still holding above the 1×2 angle line in force since May 06.
Therefore we recommend readers to hold on to their bullish bias in this one and keep pending longs intact. Ideally, some profits should have been booked at the first target and hold for the second one. For those who have not done so, can still use rallies to book some profits and hold for the second.
Souce : IDBI Capital
Popularity: 2% [?]
Category: Medium Term
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