Stocks to watch out for post the Omicron scare!

Stocks to watch out for post the Omicron scare!

by 5paisa Research Team Last Updated: Dec 07, 2021, 01:25 PM IST

As we pass through the Omicron scare, let us analyze how the leading stocks from the Hotel, Entertainment and Travel and Tourism industry will fare post the pandemic.

The sectors that are hit majorly due to Covid are the Hotel industry, Entertainment industry, and Travel and Tourism industry. In 2020, the stocks from these sectors fell 40-50% on average. During the second wave of coronavirus in India, the industry faced the heat due to lockdown and their revenue took a hit.

As we pass through the Omicron scare, let us analyze how the leading stocks of these industries are performing.

Indian Hotels Company Ltd from the hotel industry fell over 22% in November but has sharply recovered. It has covered half of the fall in just 6 trading sessions and looks to resume its uptrend. The stock has witnessed rising volumes which suggests accumulation at the lower levels. It currently trades below its 20-DMA and any closing above this moving average will be bullishness for the short term.

The entertainment industry is still struggling to get back on track post the first wave since the cinema halls and theatres are not working at their prime capacity. PVR, the leading stock in this sector, has also witnessed a sharp fall after the news of the Omicron variant broke out. The stock fell over 23% and is currently consolidating amid volatility. Rising volumes have been witnessed as the stock struggles at lower levels. It is just trading above its 200-DMA, and one might look to accumulate this good quality stock at this level.

The stock of Easy Trip from the Travel industry didn’t witness the severity of the fall. Since its recent high, the stock has fallen about 10% which is far less than the stocks discussed above. The stock has been consolidating in the narrow range of 490-510 and trading below its 100-DMA. An interesting point to point is that the key moving averages have been closely placed and any breakout with larger volumes from hereon will witness an uptrend.

As we get some clarity over the Omicron scare, we can see these stocks getting into the limelight as they have been beaten down and one might look to accumulate them at lower levels.

SENSEX
54,587.80
269.33 (0.50%)
Nifty 50
16,346.35
87.05 (0.54%)
Nifty Bank
34,546.15
244.25 (0.71%)
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SENSEX
54,587.80
269.33 (0.50%)
Nifty 50
16,346.35
87.05 (0.54%)
Nifty Bank
34,546.15
244.25 (0.71%)

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