Quant Pick - Dabur India - ICICI Direct

Recommendation

Buy Dabur in range of Rs. 510-520
Target: Rs. 605
Stop Loss: Rs. 468
Time frame: Three months

Derivatives & Quantitative Outlook

Amid current bullish sentiments, FMCG stocks have seen relative underperformance but absorbed any selling pressure. Dabur India is among those few stocks that are trading near lifetime highs outperforming peers from the FMCG pack. We believe stocks like Dabur India will outperform the index in the short-term and witness buying interest.

On the F&O front, the current open interest in the stock is significantly high and is at a two-year high. OI in the stock has increased more than 60% since the July series. We believe this accumulation was formed in August until November month. Despite weakness being seen in the stock during November and December, it did not prompt any major short additions. With the stock surpassing its major resistance levels of Rs. 520, we expect fresh longs to be seen in the stock.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_Dabur_Dec20.pdf

Shares of DABUR INDIA LTD. was last trading in BSE at Rs.525.35 as compared to the previous close of Rs. 514.4. The total number of shares traded during the day was 173408 in over 3669 trades.

The stock hit an intraday high of Rs. 527.15 and intraday low of 514.9. The net turnover during the day was Rs. 90387156.

Source : Equity Bulls

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