Technical Check: 100% in a year! This Rakesh Jhunjhunwala owned stock could see another 40% upside

India Hotels Ltd which rallied more than 120 per cent in a year compared to over 19 per cent upside seen in the Nifty50 in the same period could still rally by about 40 per cent in the next 6 months going by technical setup.

Big Bull of the Indian market, Rakesh Jhunjhunwala holds 2.2 per cent stake or for the quarter ended December 2021, showed BSE shareholding pattern of the company.  

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The consumer service company with a market capitalization of more than Rs 33,000 cr hit a fresh 52-week high of Rs 245.45 on 30 March, 2022.

Even though the stock is trading around fresh 52-week highs, experts advise investors to either buy the stock now or on dips for a possible target of Rs 335 which translates into an upside of over 39 per cent from Rs 241.45 recorded on 30 March.

The high beta stock made an intraday low of around 180 on 7 March and since then we have seen a vertical rise in the stock. It has rallied nearly 10 per cent in a week, and about 19 per cent in a month.

On a 3-month basis, the stock has risen more than 34 per cent compared to a flattish performance by the Nifty50 in the same period, data showed.

The recent price action resulted in a trend line breakout connecting Aug 21, and March 22 supported by volumes on the weekly scale, suggest experts.

From a shareholding perspective, FIIs have increased their holding from 13.48 per cent in the September quarter to 15.19 per cent in the December quarter. Mutual Funds decreased holding to 18.08 per cent in the quarter gone by, data from Trendlyne showed.

The stock is trading well above crucial short and long-term moving averages of 30,50,100 and 200-DMA which is a positive sign for the bulls.

The stock price started its Up move from 94 (April 2021) to 237.5 (Aug 21) supported by volumes. The stock traded above averages and the Supertrend indicator was also in Positive Mode from May 21 to March 22.

“The stock traded in the range of 170 to 225 from Aug 21 to March 22. Recently the breakouts have happened above the trend line connecting Aug 21 & March 22, supported by volumes,” Bharat Gala, President - Technical Research, Ventura Securities Ltd, said.

“The Demand Index, PVT, & Vortex Indicator suggest a firm uptrend. The possible target is 335. If the stock price corrects downwards the buy levels are (222-214)-208-(201-198),” he said. A Stop Loss to be observed in the trade is 185.

(Disclaimer: The views/suggestions/advice expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)