According to ICICI Direct, Colgate has also seen significant closure in open interest during the market decline while the OI came down to multi year lows at 1.2 million shares from 3.5 million shares seen in February.
ICICI Direct's research report on Colgate Palmolive
Derivatives & Quantitative Outlook
In the recent market recovery, consumption stocks have been witnessing continued buying interest and are defying the market volatility on the back of strong resilience shown by sectoral heavyweights. A sharp decline in crude prices also bodes well for stocks like Colgate. We believe the stock will continue its performance as it is moving above its two month consolidation range amid fresh long additions.Colgate has also seen significant closure in open interest during the market decline while the OI came down to multi year lows at 1.2 million shares from 3.5 million shares seen in February. The stock saw a sharp recovery in April. Since then, it has remained in the range of Rs 1300-1400. However, its OI has increased sharply by almost 50%, indicating ongoing long additions. The major Call options base of Colgate was placed at the 1460 and 1500 strike for the July series. As the stock has started near Rs 1440, closure of positions is evident, suggesting expectations of continued upsides.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.