Colgate Palmolive - Quant Pick - ICICI Securities

Recommendation

Buy Colgate Palmolive in the range of Rs. 1410-1440
Target: Rs. 1670
Stop Loss: Rs. 1290
Time frame: Three months

Derivatives & Quantitative Outlook

In the recent market recovery, consumption stocks have been witnessing continued buying interest and are defying the market volatility on the back of strong resilience shown by sectoral heavyweights. A sharp decline in crude prices also bodes well for stocks like Colgate. We believe the stock will continue its performance as it is moving above its two month consolidation range amid fresh long additions.

Colgate has also seen significant closure in open interest during the market decline while the OI came down to multi year lows at 1.2 million shares from 3.5 million shares seen in February. The stock saw a sharp recovery in April. Since then, it has remained in the range of Rs. 1300-1400. However, its OI has increased sharply by almost 50%, indicating ongoing long additions. The major Call options base of Colgate was placed at the 1460 and 1500 strike for the July series. As the stock has started near Rs. 1440, closure of positions is evident, suggesting expectations of continued upsides.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_Colgate_Jul20.pdf

Shares of COLGATE-PALMOLIVE (INDIA) LTD. was last trading in BSE at Rs.1413 as compared to the previous close of Rs. 1429.35. The total number of shares traded during the day was 24580 in over 1697 trades.

The stock hit an intraday high of Rs. 1449.5 and intraday low of 1410. The net turnover during the day was Rs. 35261291.

Source : Equity Bulls

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