High Conviction MTF Pick : Buy Indian Hotels Company Ltd For Target Rs. 775 by Bajaj Broking
Technical Outlook
Indian Hotels has been in a corrective phase over the past two to three months and is currently consolidating near a key support zone. This technical structure suggests a favorable risk-reward setup, indicating the potential for a bullish reversal and the initiation of the next upward leg in the prevailing uptrend.
The stock is currently exhibiting base-building price action around the key demand zone of Rs.630–Rs.670, which marks a confluence of multiple technical factors supporting a potential reversal:
* 61.8% retracement of the previous June 2024-January 2025 up move (507-894)
* 100 weeks EMA placed around 671
* Previous major breakout area placed around 650 levels which has reverse its role and act as support in the medium term as per change of polarity concept.
A key technical takeaway from the weekly chart of Indian Hotel is the time-price relationship, where the stock has taken 11 months to retrace merely 61.8% of the preceding 7 months rally from Rs.507 to Rs.894. This shallow and timeconsuming retracement reflects inherent strength and a bullish undertone. The recent corrective phase is interpreted as a higher base formation, setting the stage for the next impulsive leg on the upside.
The ongoing corrective phase appears to be nearing exhaustion, with price action signaling the potential for a pullback towards the Rs.775 level in the coming month. This level represents the 50% Fibonacci retracement of the entire decline from Rs.894 to Rs.672 and coincides with the September 2025 high, reinforcing it as a key resistance zone.
On the momentum front, the weekly stochastic oscillator has bounced from the oversold zone and recently triggered a bullish crossover above its 3-period moving average, reinforcing the underlying positive momentum and supporting the bullish bias in the stock.
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