Check-In Check-Out Time is Back!

JC Parets
October 10, 2021

We've been discussing Covid for so long now, that it feels as though it's been going on forever. It carried out massive damage across different segments. But we are now seeing a resumption in trends that have been in place long enough to call them trends.

As we know, travel had been largely affected by the pandemic. Getting out of the house to buy groceries became the new travel plan! But not anymore!

We're now witnessing a strong and consistent pick-up in flight and hotel bookings which means that we can start taking a look at the shares that belong to these categories as well!

So let's do just that.

First up, let's take a look at the custom Leisure Index that we track at ASC.

As can be seen from the chart below, the custom Leisure Index is at a crucial level. Currently trading close to its 2019 highs, the index seems ready to break out soon. And why is it that we think so?

Because there are signals that are coming through from the constituents of the index that suggest so.

Click on the image to zoom in.

Also, bear in mind that the above index does not include names like Lemontree and Chalet because the data on these series is quite short, which would in turn cut down the data of the Index series as well.

Let's now take a look at some of these constituents that are performing well.

Here's a popular name that has been doing well from the very beginning- IRCTC. The price has been in a strong uptrend and has displayed great strength and momentum. Take a look at how comfortable the RSI is in the bullish momentum territory.

With the price breakout in the week gone by, we are bullish above the level of 3,965 with a target near 5,940. The price is half-through to its target already, so if this is a name you hold already, keep an eye on 5,940 as the next target.

Next, Indian Hotels has been showing strength. We saw the follow-through in price as well whereby the stock is almost three quarters up towards its target.

The next target to track from these levels would be 225. The risk management level here is 163.

Take a look at Thomas Cook next. The price broke out of a long-term resistance level. Look at the price memory at the level of 76! Now that the overhead supply has been absorbed, the price is ready for the next leg of the rally.

The strong bullish breakout candlestick, the indicator in the positive territory are all signs that this could be the stock to track going forward.

We are bullish above the level of 76 with a target near 110.

What about the names we couldn't include in the custom index?

Lemon Tree broke out above its overhead supply zone of 43 and is very close to its next target of 61.50. A move above 61.50 could take the price higher towards 91.

Chalet has also moved past its resistance of 215 and looks good for the next target of 286. This thesis is valid only above the risk management level of 215.

Delicious food anyone? The price action looks just as delicious. Kamat Hotel broke out above its resistance of 50 and is on its way to 70. The price broke out of a four-year massive base. We love us some smiley faces!

EIH Hotels have also indicated a strong breakout above the level of 122. We are bullish above the level of 122 with a target near 164.

The indicator has moved into the bullish momentum territory for the first time in four years! That's got to mean something.

EIHA, or EIH Associated Hotels is also halfway through its immediate target. The next target to track would be 485. We have another four-year base breakout here! Lots of smiley faces to choose from!

MHRIL has been slightly muted since its breakout above 216. It's slow and steady for this one though. The next target to track is 300. Momentum is certainly by its side. The risk management level to track would be 216.

If movies are on your mind, then INOX Leisure could be on your portfolio. In the week gone by, we got a follow-through in the breakout. The price is currently trading above its risk management level of 376. The next target to track would be 512.

If it's entertainment you're after then how can we leave out Delta Corp?

The price broke out above the level of 268 and is currently sustaining above it. With this move, the next target to track would be 401 with 268 acting as the risk management level. A move below this level, and we're out. Notice again how the indicator is back in bullish momentum territory after a gap of four years!

These were some stocks from the Leisure Index that have been attracting more attention now. Have you invested in any of these shares?

Tell us what you think of this sub-sector and what you're tracking.

Allstarcharts Team

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