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.
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