Buy Godrej Consumer Products in range of Rs. 685-700
Target: Rs. 815
Stop Loss: Rs. 625
Time frame: Three months
Derivatives & Quantitative Outlook
The current rally in the index has seen broad market participation with banking and auto stocks outperforming significantly. In the past couple of weeks, underperforming sectors like NBFC and PSUs saw a decent recovery whereas major FMCG stocks underperformed the index. Stocks like Godrej Consumer Products, which have remained largely range bound in the last couple of weeks, are likely to see fresh momentum in the coming weeks.
The open interest in Godrej Consumer Products has declined significantly amid the resilience shown by the stock. The stock had made a high of Rs. 750 in January 2020. After eight months, it has again reached these levels. In the last month, profit booking was seen from Rs. 750. It has been declining. However, since mid-October 2020, shorts have been continuously reducing, indicating lower rollover of short positions. In view of the recovery in FMCG space, we expect fresh longs to be formed in the stock. This should take the stock higher.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_GodrejCons_Nov20.pdf
Shares of GODREJ CONSUMER PRODUCTS LTD. was last trading in BSE at Rs.685.6 as compared to the previous close of Rs. 683.2. The total number of shares traded during the day was 37535 in over 1875 trades.
The stock hit an intraday high of Rs. 703 and intraday low of 682. The net turnover during the day was Rs. 26059599.