Tata Chemicals - Quant Pick - ICICI Securities

Recommendation - Buy Tata Chemicals in the range of Rs. 305-320
Target: Rs. 385
Stop Loss: Rs. 274
Time frame: Three months

Derivatives & Quantitative Outlook

Certain market segments have been witnessing strong buying interest in the recent market move. The move is primarily seen in the underperforming space. However, stocks like Tata Chemical have been outperforming broader markets considerably. Tata Chemicals saw a sustained up move since March 16 when the Nifty made a bottom near 7500 on the back of strong delivery buying. We expect the stock to resume its uptrend after a brief consolidation.

The open interest in the F&O segment declined substantially in February and March with Tata Chemicals no exception. The OI in the stock has declined from more than 3.5 million shares to just 1 million shares in the March series. Since then, considering the continued outperformance in the stock, fresh build-up was seen in the May and June series, which should be positive for the stock.

For details, click on the link below https://www.icicidirect.com/mailimages/IDirect_QuantPick_TataChem_Jun20.pdf

Shares of TATA CHEMICALS LTD. was last trading in BSE at Rs.315.5 as compared to the previous close of Rs. 318.35. The total number of shares traded during the day was 149952 in over 2856 trades.

The stock hit an intraday high of Rs. 324.3 and intraday low of 314.7. The net turnover during the day was Rs. 48079922.

Source : Equity Bulls

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