Medium Term Investment Taj GVK
Hotel sector stocks had been on a fine rally since April 2009, resolving some good long term patterns on charts. The bullishness was also apparent in the form of strong fundamental background, positive news flows, significant OI build up and excellent rollover statistics.
Based on a detailed view of the hotels industry, with price, patterns and its implications, we covered the Hotel sector stocks in this segment on Dec 21 2009. The stock was moving in a sideways phase but considering the big picture as bullish we expected this stock to stage a breakout above 160 region and hence recommended as a buy around 135-140 levels. Looking at the chart alongside we find that the last 3 months unfortunately did not help prices much in
terms of rallying as the trend started getting volatile on heavy profit booking near resistances. This trapped the prices into a range bound phase in 140-160 band over the last 3 months.
However having survived above our stoploss levels (around 110) and holding support of ascending trendline and value areas, managed to bounce back from a low of 138. Prices are actually consolidating near the upper end of the rally, waiting for a decisive breakout above 160 levels and also to resolve one set of the fractal rounding pattern on higher degree charts. The overall trend continues to show promise and signals the possibility of meeting our mentioned targets of 260-270. Hold existing open positions for the target. Those who have bought at lower levels, can book some profits around 220.
Souce : IDBI Capital
Popularity: 4% [?]
Category: Medium Term
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