IRCTC, Indian Hotels, IEX: How to trade these stocks in the near term?

Domestic equity indices have risen for five straight sessions now, thanks to a slew of economic readings and the status quo by the RBI in its latest monetary policy review. The BSE Sensex gained 143.66 points, or 0.24 per cent, to close at 59,832.97 on Thursday. The NSE Nifty advanced 42.10 points, or 0.24 per cent, to settle at 17,599.15 for the day.

During the session, select stocks including Indian Hotels Company, Indian Energy Exchange (IEX) and Indian Railway Catering and Tourism Corporation (IRCTC) buzzed quite a bit. Here is what Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has to say on these stocks ahead of Monday's trading session:

Indian Energy Exchange | Hold | Rs 186-210 | Stop Loss: Rs 132
Indian Energy Exchange (IEX) has reclaimed its 200-day SMA with higher volumes. However, the stock is still undeforming benchmark indices. The momentum indicator viz RSI has crossed the 50 reading, which indicates that the momentum is likely to continue on the upside. Hence, one can hold the stock at current levels with a stop loss of Rs 132 for a target of Rs 186-210 levels in the couple of weeks.

Indian Railway Catering and Tourism Corporation | Sell | Rs 520-500 | Stop Loss: Rs 594
Indian Railway Catering and Tourism Corporation (IRCTC) is maintaining a lower top -bottom formation on the daily chart, which is a sign of weakness. The stock is showing a poor relative strength and is underperforming benchmark indices. The momentum indicator viz MACD is trading in the negative territory. One can hold short positions with a stop loss of  Rs 594 for a target of Rs 520-500 levels in the next couple of weeks.

Indian Hotels Company | Buy | Rs 396-420 | Stop Loss: Rs 290  
Indian Hotels Company witnessed eight weeks of lateral consolidation on the weekly chart. Further, the stock is outperforming benchmark indices. Even the momentum indicator viz the MACD is positively poised. Combining the above parameter, it is evident that momentum on the upside is likely to continue. Hence, one can buy the stock at current levels, with a stop loss of Rs 290, for a target of Rs 396-420 levels in the next couple of weeks.


(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)

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