Quant Pick - United Breweries: ICICI Direct

ICICI Direct's research report on United Breweries

Recommendation

Buy United Breweries in the range of Rs 1050-1075 Target: Rs 1270 Stop Loss: Rs 955 Time frame: Three months

Derivatives & Quantitative Outlook

Broader markets continued to witness a recovery. Stocks from the midcap and small cap space are witnessing continued buying at every decline and outperforming major indices. We believe the ongoing participation from the midcap space should continue. We expect renewed buying in stocks like United Breweries that have corrected after a sharp up move was seen a couple of days back. The open interest in the stock declined sharply in March and as long liquidation was observed across sectors. However, in the recent consolidation, the stock has seen a gradual build-up of positions. The current OI is the highest since March. We believe long positions have been formed. It is likely to see fresh upsides in the coming sessions.

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