Buy Godrej Industries; target Rs 330: ICICIdirect.com

ICICIdirect.com report on Godrej Industries

"Godrej Industries, the last couple of months saw a consolidation in the broader index at higher levels where the midcap segment started witnessing increased buying momentum. The CNX Midcap Index has risen almost 10 percent in the last two months compared to just a 5 percent rise in the Nifty indicating money flow getting diverted into the midcap segment. Midcap stocks from the FMCG, technology and pharma space witnessed significant upsides in the same time frame. We expect stocks like Godrej Industries to continue to attract money flows, which should prompt fresh upsides in the stock."

"The January series witnessed high rollover of 78 percent in the stock suggesting short positions have been rolled into the stock. In the very first session of the series, Godrej Industries witnessed upsides of almost 2.8 percent. This has prompted closure of positions to the tune of 7 percent. We expect the trend of short covering to continue in the stock as it is approaching the previously shorted levels of Rs 285. In such a scenario, the stock may find positive momentum towards Rs 330 levels in the days to come.

Recommendation: "Buy Godrej Industries in cash in the range of Rs 273-278 for the target price of Rs 330 with a stop loss of Rs 248 on a closing basis," says ICICIdirect.com research report.

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