Quant Pick - United Breweries - ICICI Direct

Recommendation

Buy United Breweries in range of Rs. 1250-1280
Target: Rs. 1510
Stop Loss: Rs. 1145
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 enduring participation from the midcap space should remain. We expect renewed buying in stocks like United Breweries that has been consolidating for a month after a sharp up move was seen in December 2020.

On the F&O front, leveraged positions in the stock have declined noticeably in the last one month as stock prices remained subdued and were unable to perform in line with the market. Despite sharp closure, the stock has been able to trade above its support level of Rs. 1200 suggesting prevailing positive bias in the stock. We believe fresh addition in the stock will trigger another round of up move in it.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_UBL_Feb21.pdf

Shares of UNITED BREWERIES LTD. was last trading in BSE at Rs.1251.2 as compared to the previous close of Rs. 1274.7. The total number of shares traded during the day was 86094 in over 1530 trades.

The stock hit an intraday high of Rs. 1284.8 and intraday low of 1245. The net turnover during the day was Rs. 108225014.

Source : Equity Bulls

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