Buy UPL in the range of Rs. 462-472
Target: Rs. 560
Stop Loss: Rs. 420
Time frame: Three months
Derivatives & Quantitative Outlook
Stocks from the agro chemical space have seen continued buying interest in the ongoing market recovery and UPL is no exception. The stock saw a sharp reversal from lows near Rs. 250 to Rs. 450 by June. Since then, it has been consolidating in a range. However, we expect it to resume its uptrend on the back of long positions being intact.
Unlike most stocks, open interest in UPL has remained almost unchanged despite the sharp decline seen in February. Fresh shorts were added during the time. These positions were covered in June. However, July series saw a gradual but significant addition in the stock while it remained largely range bound ahead of results. We expect the stock to move higher with cash based buying likely to be seen in the coming weeks.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_UPL_Aug20.pdf
Shares of UPL Limited was last trading in BSE at Rs.480.35 as compared to the previous close of Rs. 463.75. The total number of shares traded during the day was 289306 in over 7580 trades.
The stock hit an intraday high of Rs. 484.9 and intraday low of 465.5. The net turnover during the day was Rs. 137793989.