Technical Research : Hotels break out; restaurants bottom out by Emkay Global Financial Services
The hotel pack continues to lead the leisure theme on the charts. THELEELA and TAJGVK are confirming breakouts to fresh highs and CHALET and ITCHOTEL are testing their respective falling trendlines after multi-month corrections. These trends place hotels firmly ahead of restaurants on the relative-strength rank within the Leisure Services space. Among restaurants/QSR, JUBLFOOD, TRAVELFOOD, and DEVYANI are showing early signs of bottoming out and reclaiming key support/trendline levels after a sharp corrective phase, making them better-suited for staggered buying than aggressive fresh buying. Overall, we prefer buying strength in hotels on dips and buying restaurant names closer to support, keeping stop losses strictly at the levels below.
Trade Ideas
* THELEELA: Buy – 520–508; SL – 487 (6%); Targets – 580 (11%)/630 (21%).
* CHALET: Buy – 850–830; SL – 800 (6%); Target – 1,020 (20%).
* ITCHOTEL: Buy – 170–165; SL – 155 (9%); Target – 200 (20%)/220 (30%).
* TAJGVK: Buy – 370–350; SL – 330 (10%); Target – 445 (20%)/510 (38%).
* JUBLFOOD: Buy – 475–450; SL – 430 (9%); Target – 580 (22%)/620 (30%).
* TRAVELFOOD: Buy – 1,375–1,340; SL – 1,280 (7%); Target – 1,550 (12%)/1,620 (18%).
* DEVYANI: Buy – 123–115; SL – 106 (13%); Targets – 150 (22%)/163 (32%).
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