ICICIdirect.com is bullish on Godrej Industries and has recommended buy rating on the stock with a target of Rs 370 in its December 10, 2012 research report.
“FMCG stocks were the major outperformers in the last year and exhibited strong resilience despite jittery market conditions. Godrej Industries has observed upsides of more than 80% YTD while the Nifty was able to register close to 30% gains. When most FMCG stocks are making their all time highs, Godrej Industries is still lagging significantly in terms of prices. We believe the stock may continue its momentum and would try to match its peers.”
“In the recent leg of profit booking from 330 to 285, Godrej Industries accumulated more than 60% open interest. Despite a recovery seen towards 310, the open interest base is still intact indicating stuck up short positions. We expect the stock to witness short covering, which would eventually lead it to higher levels. The stock is continuously trading above its long term moving averages suggesting strength in it. Moreover, it has found support near its 50 DMA levels and was unable to sustain below these levels. Recently, cash based activities were observed in the range of 300-310. We expect these levels to remain important supports in the coming sessions. The stock has a major support at 285 levels which also coincides with 50% retracement of the decline seen in the stock from the peak seen in 2007. In addition, it is forming a higher bottom formation since February 2010 indicating inherent strength. The recent bottom was formed near 285. We expect this level may remain crucial for the stock to remain in the uptrend,” says ICICIdirect.com research report.
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