Indian Hotels and Lemon Tree among Sharekhan's top picks in hotel space; check details

Indian Hotels: The brokerage recommends buying the stock between ₹333 and ₹339 and adding more on dips in the range of ₹330-325. It has given a target of ₹360-380 for a time frame of 3-4 weeks. It advises reversal at ₹317. The brokerage noted that the stock has broken out of a sideways consolidation formed in a rectangular pattern and has also provided a breakout from the falling wedge pattern and retested the same. The momentum indicator has provided a bullish crossover on the daily charts and it is trading well above the reference line, said Sharekhan. The stock has risen almost 45 percent in the last 1 year and 7.5 percent in 2023 YTD, giving positive returns in 3 of the 4 months of the current calendar year.

EIH: Sharekhan has a ‘buy’ call on the stock. It has given a ‘buy’ range of ₹170-175 and suggests adding more on dips between ₹165 and ₹170. It has given a target of ₹195-205 for a time frame of 3-4 weeks. It advises reversal at ₹162. As per the brokerage, the stock has breached the falling trendline resistance on the upside indicating bullishness. The breakout has been accompanied by above-average volume, indicating that it is genuine and the momentum indicator has a positive crossover on daily charts, it said. The stock has added 13 percent in the last 1 year but is down 2.5 percent in 2023 YTD, falling in 2 of the 4 months of this year.

Wonderla Holidays: The brokerage is bullish on the stock and advised buying it between ₹430 and ₹440 and adding more on dips in the range of ₹420-415. It has given a target of ₹500-580 for a time frame of 3-4 weeks. It advises reversal at ₹379. The brokerage pointed out that the stock has broken out of a falling channel, indicating a trend reversal from down to up. The stock now seems to be forming a triangular pattern post which breakout will be upwards as it’s a continuation pattern, it noted. The momentum indicator has a positive crossover on the weekly charts and the range for the stock is ₹380-470, added Sharekhan. The stock has jumped 73 percent in the last 1 year and advanced 28 percent in 2023 YTD, giving strong returns in all 4 months of the year so far.

Lemon Tree: The brokerage recommends buying the stock in the range of ₹84-87 and adding more on dips between ₹81 and ₹82 for a target of ₹97-104. It has given a time horizon of 3-4 weeks and a reversal at ₹77. According to Sharekhan, the stock has broken out from a base symmetrical triangular pattern which is a bullish reversal pattern and has provided a breakout with increasing volumes. The momentum indicator MACD has provided a bullish crossover on the daily as well as weekly charts, it added. The stock has gained 28 percent in the last 1 year and is up just 2 percent in 2023 YTD.