ICICIdirect.com has advised to buy Godrej Industries in a range of Rs 389-397 for the target price of Rs 475 with a stop loss of Rs 354, in it's research report dated August 7, 2015.
Quant Picks - Godrej Industries: ICICIdirect.com
In the ongoing consolidation of the Nifty, midcap stocks have started to garner open interest. Godrej Industries is one such stock, which is likely to come out of the recent consolidation on the back of the build-up of addition of long positions and the recent delivery pick-up.
Futures data is suggesting resumption of long addition trend. In May, OI had come down to multi-month low of 1.60 million shares. Since then, the stock has seen constant yet gradual long additions while the current OI is 2 million shares. We believe long positions have been getting added in the stock at lower levels
The spread between 30 Day HV and 60 Day HV is still in declining trend in the recent up move of the stock. The spread is likely to further dip into the negative territory. We believe the 30 Day HV will decline further, which would take the spread in the negative territory. The decline in spread would lead to upsides in the stock.
Buy Godrej Industries in range of Rs 389-397
Target Price: Rs 475
Stop loss: Rs 354
Time frame: Three months
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