Buy Divis Labs, Colgate Palmolive March Futs: ICICIdirect

ICICIdirect.com has recommended to buy Divis Laboratories March Future and Colgate Palmolive March Future for target of Rs 1970 and Rs 2280 respectively, in its research report dated March 5, 2015.

August 05, 2015 / 15:56 IST

26 Aug, 2025 12:21

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ICICIdirect.com research report

Divis Laboratories (DIVLAB)

Buy DIVLAB March Future in the range of |1740-1760 . Target Rs 1970 Stop loss Rs 1633 In the current market move, despite the thrust remaining on the cyclical and infrastructure space, stocks from the pharma space continue to display a strong price performance. Since February expiry, the Pharma Index has moved up over 10% whereas the Nifty moved up over 2.5%. Hence, within the pharma space, we recommend buy on Divis Labs, which has started to display a strong price performance recently. Since November 2015, the stock has been trading sideways in the range of 1600-1750. Recently the stock started to move above this band and closed above Rs 1770. This range break-out is likely to attract fresh long build-up in the stock as the OI since November has come down by 50% to 3900 contracts. This likely fresh long build-up is likely to take the stock to new highs.

Colgate Palmolive (COLPAL)

Buy COLPAL March Future in the range of Rs 2040-2060. Target Rs 2280 Stop loss Rs 1933 Post the Budget announcement, as the index heavy weight ITC tumbled, the money flow from the stock focused on other FMCG stocks. Colgate Palmolive is one such stock. Colgate has given a break out after four months of consolidation between Rs 1700 and 2000. In the last session, the stock gave a strong volume break out. In the future segment as well, the stock witnessed fresh buying. It was falling in November –December on the back of long closure and fell 300 points to 1700 levels. Post the Budget, the stock started to see accumulation. It is likely to attract further long additions. Hence, we recommend buy on the stock for a target price of Rs 2280.