United Breweries - Quant Pick - ICICI Securities

Recommendation

Buy United Breweries in the range of Rs. 980-1005
Target: Rs. 1160
Stop Loss: Rs. 895
Time frame: Three months

Derivatives & Quantitative Outlook

Broader markets continued to witness a recovery. Stocks from the midcap and small cap space are witnessing continued buying at every decline and outperforming major indices. We believe the ongoing participation from the midcap space should continue. Stocks like United Breweries should start moving higher from current levels as long accumulation was seen in the stock at lower levels.

The open interest in the stock declined sharply in March and as long liquidation was observed across sectors. However, despite the ongoing consolidation, the stock has seen a gradual build-up of positions. The current OI is highest since March. We believe long positions have been formed in the stock. It is likely to see fresh upsides in the coming sessions.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_UnitedBreweries_Aug20.pdf

Shares of UNITED BREWERIES LTD. was last trading in BSE at Rs.1003.9 as compared to the previous close of Rs. 972.65. The total number of shares traded during the day was 72223 in over 3696 trades.

The stock hit an intraday high of Rs. 1008.6 and intraday low of 961.7. The net turnover during the day was Rs. 71886135.

Source : Equity Bulls

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