Royal Orchid Hotels, Kamat Hotels: Hotel stocks can rally up to 20%

Select hotel stocks may rise up to 20 per cent in coming sessions, as per the technical charts

Hotel stocks to be remain in limelight after Royal Orchid Hotels hits a new historic peak on Friday. Since the previous session, leading hotel stocks were on a stellar run, with Kamat Hotels India reaching a fresh 52-week high.

Similarly, shares of Indian Hotels Co. and Asian Hotels (North) seem to be on track to claim their respective new territories. Speciality Restaurants aims to reach new all-time high after witnessing smart accumulation in recent sessions. 

Most of the hotel stocks closed in green on Thursday and are continuing to trade in positive trajectory on Friday, with renowned shares like Mahindra Holidays & Resorts India and Speciality Restaurants surging over 2 per cent each.

Here’s the technical outlook for hotel stocks:-

Indian Hotels Co. Ltd (INDHOTEL) 

Likely target: Rs 370

Upside potential: 10%

When this stock succeeds to absorb the selling pressure emerging in the range of Rs 340 to Rs 335, the breakout could harvest a robust upside towards a new historic peak. The stock may hit Rs 370. 

As of now, the immediate support is established at Rs 325, and the positive bias shall prevail upward unless Rs 320 is decisively breached. CLICK HERE FOR THE CHART

Kamat Hotels India Ltd (KAMATHOTEL)

Likely target: Rs 200

Upside potential: 20%

The “Higher High, Higher Lowe” formation has prompted a fresh bullish upside in the shares of Kamat Hotels India, according to the weekly chart. The formation continues to defend any weakness by displaying accumulation at the lower support. 

A closing basis support of Rs 140 shall see the counter heading towards Rs 200 level. Strangely, the stock remains in overbought territory of Relative Strength Index (RSI), but no sell-off could affect the upward trend. CLICK HERE FOR THE CHART

Speciality Restaurants Ltd (SPECIALITY)

Likely target: Rs 260

Upside potential: 12%

A formation of “Double Bottom” may inspire shares of Speciality Restaurants to enter a short-to-medium term bullishness. If that happens, the price action could take the counter to Rs 260 levels. 

The stock has resilient support of the 200-DMA set at Rs 207-mark. The strength and momentum indicator, RSI, has broken out of the barrier of 54 value. This move may further push stock price to higher level. CLICK HERE FOR THE CHART

Royal Orchid Hotels Ltd (ROHLTD)

Likely target: Rs 380

Upside potential: 15%

Whenever a stock makes to a new historic peak, assisted by resilient volumes, the trend appears to possess an inherent strength. And so is the case with Royal Orchid Hotels. A compelling close by surging 16 per cent on Thursday and hitting a new all-time high on Friday, suggests fresh level of upside in coming sessions. 

The stock has devastated the trendline hurdle set at Rs 290, as per the daily chart. The support for the upward bias stands at Rs 290-mark, which needs to be defended on the closing basis. The stock is on its way to Rs 380 level. CLICK HERE FOR THE CHART

Asian Hotels (North) (ASIANHOTNR)

Likely target: Rs 200

Upside potential: 14%

In recent sessions, this counter has been in upper circuits, inducing strong bias of the trend. Now, after a brief halt, the counter has resumed its upward trajectory.

Until the support of Rs 135 is protected, the price action may see stock heading towards Rs 200 levels, as per the weekly set up. RSI is witnessing bullish momentum in the overbought category, nullifying any dominance of the selling pressure. CLICK HERE FOR THE CHART