Market has hit fresh high but still the buoyancy is expected to continue given the immense liquidity. Though as and when the US begins its asset tapering, the impact will be seen in all of the markets including India, but for now as the market mood continues to be positive, HDFC Securities has suggested two buys from the hotel and luggage space as there is anticipated a recovery in the travel and tourism sector with the easing of Covid situation in the country.
The brokerage firm has given a ‘Buy' on the Hotel company for the target price of Rs. 119. The stock last traded at a price of Rs. 108.25. Note the target is set to be achieved in 3 months time and the company has suggested a stop loss of Rs. 98.5.
As per the brokerage the long trend of weakness seems to be over and the counter sees sharp upside bounce from the crucial lower support of ascending trend line at Rs 102 levels and the stock price is now trading higher. "This pattern could signal a formation of an important bottom reversal and one may expect further upside in the near term. Weekly DMI/ADX oscillators are showing further strengthening of upside momentum in the stock price ahead. The overall chart pattern of EIHOTEL indicate long trading opportunity. One may look to create positional long as per the levels mentioned above", adds the brokerage.
2. VIP Industries:
The stock is a ‘Buy' by HDFC Securities for an upside target of Rs.599, implying gains of 23% from the last traded price of Rs. 488.30 per share.
The brokerage has made the following observations in respect of the scrip:
-Downward sloping rend line breakout is seen on the weekly charts.
- In the month Of August stock saw huge amount of volume building along with the price rise.
- Bullish cup and handle pattern breakout is seen on the weekly charts.
- Though RSI has reached overbought zone, it has not shown any sign of negative divergence
- Weekly MACD has been trading above signal and equilibrium line
- Stock is placed above medium to long term moving averages, indicating bullish trend on all time frames
The stocks listed out here are taken from HDFC Securities and are not an investment advice. Kindly do your own analysis before making risky stock market bets.