Quant Pick - Bharat Forge - ICICI Securities

Recommendation

Buy Bharat Forge in range of Rs. 455-465
Target: Rs. 545
Stop Loss: Rs. 414
Time frame: Three months

Derivatives & Quantitative Outlook

Broader markets have been witnessing volatility after sharp declines were seen in the last expiry week. However, a couple of midcap stocks have shown significant resilience in the recent market volatility and seen sharp pullbacks. We believe Bharat Forge is one such stock that is likely to outperform in the coming days.

The open interest in Bharat Forge has been gradually increasing in the last couple of months as the stock exceeded its major hurdle of Rs. 400 in August. Since then, long additions have propelled the stock towards Rs. 520. Current OI in the October series is almost at a six month's high. We believe these are fresh long additions. It is well placed to move above Rs. 520.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_BharatForge_Oct20.pdf

Shares of BHARAT FORGE LTD. was last trading in BSE at Rs.464.75 as compared to the previous close of Rs. 448.1. The total number of shares traded during the day was 163117 in over 4184 trades.

The stock hit an intraday high of Rs. 469 and intraday low of 454.35. The net turnover during the day was Rs. 75298051.

Source : Equity Bulls

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