Shares of most companies operating in travel and tourism sectors have outperformed the markets in November.
Travel-related stocks such as InterGlobe Aviation (IndiGo), SpiceJet, and IRCTC
have seen sharp upside in the past one month (From November 2 - December 4). For instance, IndiGo has rallied 33 per cent while SpiceJet has surged 45 per cent during the period. Indian Railway Catering and Tourism Corporation (IRCTC), on the other and, has gained nearly 21 per cent. In comparison, the benchmark S&P BSE Sensex has risen 13 per cent, exchange data show.
The prospect of faster-than-expected economic recovery on the back of successful Covid-19 vaccine trials has resulted in a sharp surge in aviation and travel-related stocks.
So, should you place your bets on these stocks now? Here's a look at what technical charts suggest.
Indian Railway Catering and Tourism Corporation (IRCTC):
Shares of most companies operating in travel and tourism sectors have outperformed the markets
in November as investors were seen rotating out of 2020 winners such as IT and pharma and buying into sectors that were badly bruised because of the Covid-19 pandemic. READ MORE
A huge breakout above the resistance level of Rs 1,600 suggests further upside towards Rs 1,800 and Rs 1,860. A consolidation breakout on the weekly chart indicates a positive momentum for the coming sessions. The support stays at Rs 1,600 levels. Additionally, positive crossover of Moving Average Convergence Divergence (MACD) above the zero line with a strong reversal, exhibits an upward direction in trend. CLICK HERE FOR THE CHART
SpiceJet Ltd (SPICEJET):
After crossing the major resistance range of Rs 82 to Rs 84 levels, the counter has seen enormous buying momentum, suggesting upside towards Rs 100 and Rs 108 levels. This rally is getting the support from MACD, which is attempting to cross the zero line upward. The medium-term scale illustrates a move towards Rs 125 levels, till the counter manages to defend Rs 82 on the downside. CLICK HERE FOR THE CHART
InterGlobe Aviation Ltd (INDIGO):
A convincing trade above Rs 1,800 levels may see a rally towards Rs 2,200 as per the Inverse head and shoulder formation on the weekly chart. The overall immediate trend is optimistic with a support of Rs 1,700 levels. The counter will attempt to cross Rs 1,800 levels with the medium-term support of Rs 1,500 levels. CLICK HERE FOR THE CHART