Travel-related stocks could be one o the key beneficiaries as the economic recovery gathers steam and more people strat to travel for work and leisure.
According to reports, the sector is already seeing demand from India Inc as employees return to work, with bookings expected to reach nearly 80 per cent of pre-Covid levels in the current quarter.
Online travel portals and airlines say the demand from companies is being led by essential services sectors like pharmaceutical, oil and gas, and power. Information technology (IT) and consulting are yet to resume travel like before, but travel firms and airlines expect the situation to get better as vaccination picks up in India and globally. READ ABOUT IT HERE
Given this, is it a good idea to buy travel-related stocks now? Here's what charts say.
Indian Railway Catering and Tourism Corporation (IRCTC):
This counter has managed to conquer the gap-down range of Rs 1,601 to Rs 1,524, which indicates a steady upside for the stock, going forward. During this up move, the stock has held the support of the 50-day moving average (DMA), currently placed at Rs 1,462 levels. In addition, the Moving Average Convergence Divergence (MACD) has resisted the breach of the zero line downward, suggesting that the weakness is not very firm and is unlikely to see follow-up selling pressure. Now, as the technical indicator is rising upward, the direction and momentum of the stock show a rally towards Rs 1,750 mark, as per the daily chart. CLICK HERE FOR THE CHART
SpiceJet Ltd (SPICEJET):
The current structure of the daily chart illustrates weakness below the 50-DMA, placed at Rs 91.25 levels, which the counter has failed to cross. The immediate support comes at Rs 82 levels and until the counter trades above the Rs 80 mark, one can expect a rebound. However, a decisive breach below Rs 80 may trigger a downside towards Rs 72 and Rs 65 levels. CLICK HERE FOR THE CHART
InterGlobe Aviation Ltd (INDIGO):
This counter is trading in a broad range of Rs 1,800 to Rs 1,500 levels. As long as this range holds, the trend is going to be sideways. On the higher side, a breakout above Rs 1,800 level may see an upside towards Rs, 2,000 mark. However, a decisive break down below Rs 1,500 may see the counter slide towards the Rs 1,290 mark, which is its 200-DMA. CLICK HERE FOR THE CHART
Indian Hotels Co. Ltd (INDHOTEL):
The counter shows a trendline breakout heading towards Rs 130 and Rs 135 levels. This move has a closing basis support of Rs 120 mark, as per the daily chart. Both RSI and MACD are reflecting a bullish outlook for the stock in the coming days. RSI has formed a positive crossover and MACD is attempting to cross the zero line upward. CLICK HERE FOR THE CHART
Lemon Tree Hotels Ltd (LEMONTREE):
The stock shows a resistance of the 100-weekly moving average (WMA), as per the weekly chart. A breakout above Rs 46.10 levels, the current 100-WMA, may a see a rally towards Rs 55. The upside bias is intact till the counter holds the closing basis support of Rs 40 mark. CLICK HERE FOR THE CHART