Quant Pick - Apr 6, 2021 - Godrej Consumer Products - ICICI Direct

Recommendation

Buy Godrej Consumer Products in range of Rs. 715-730
Target: Rs. 855
Stop Loss: Rs. 655
Time frame: Three months

Derivatives & Quantitative Outlook

Select stocks from the defensive sector may witness renewed momentum amid broader market volatility. FMCG stocks like Godrej Consumer Products are likely to perform better in the coming trading sessions along with the ongoing recovery seen in sectoral peers.

The open interest in the stock has increased sharply in the last two months. In March, open interest in the stock was almost at a six-month high. As the stock has failed to participate with a market move, short positions were formed in it. However, at the end of the March series, we saw closure of open interest suggesting ongoing short covering. We believe the short covering trend will continue, which should take the stock higher in the coming trading sessions.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_QuantPick_GodrejConsumer_Apr21.pdf

Shares of GODREJ CONSUMER PRODUCTS LTD. was last trading in BSE at Rs.729.35 as compared to the previous close of Rs. 722. The total number of shares traded during the day was 26408 in over 1029 trades.

The stock hit an intraday high of Rs. 734.1 and intraday low of 721.2. The net turnover during the day was Rs. 19248723.

Source : Equity Bulls

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