Home >Markets >Stock Markets >Mahindra Holidays a top pick by HDFC Securities, sees upside in 3 months

Mahindra Holidays & Resorts shares have over 75% in one year amid the covid-19 pandemic-induced lockdown in the country that restricted travels and vacations. Domestic brokerage HDFC Securities has picked the leisure and hospitality stock as its top pick for now and sees more potential upside with the time horizon of up to three months.

In a note on August 13, HDFC Securities said the stock price of Mahindra Holidays & Resorts India Ltd was in a downward correction in the last one month. Presently, the stock price is sustaining above the support of 293 in the last two weeks. "This is evident from a formation of long lower shadows in the last two weekly candles. The stock price is forming a larger degree of higher tops and bottoms and recent swing low of this week at 293 could be considered as a new higher bottom of the sequence,'' it said.

HDFC Securities has a 'Buy' rating on Mahindra Holidays Resorts stock with the target price of 335 per share with the time frame of three months and stop loss of 277 apiece. It also suggested to add on dips at 284.

Weekly 14 period RSI (relative strength index) and ADX (average directional index)/DMI (directional movement index) are showing positive indication. HDFC Securities expects strengthening of upside momentum in the stock price ahead.

The brokerage added that the overall chart pattern of Mahindra Holidays indicate long trading opportunity. "One may look to create positional long as per the levels mentioned above."

Mahindra Holidays & Resorts India Ltd. (MHRIL), a part of Leisure and Hospitality sector of the Mahindra Group offers family holidays primarily through vacation ownership memberships. Started in 1996, the company's flagship brand ‘Club Mahindra’ has over 250,000 members, and 100+ resorts in India and abroad.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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