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Published on 9/07/2020 12:49:27 PM | Source: ICICI Direct

Quant Thematic - Voltas Ltd and Havells​​​​​​​ Ltd by ICICI Direct

Posted in Broking Firm Views - Short Term Report| #Voltas Ltd. #Havells India Ltd #Trading Report #ICICI Direct

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Voltas

* Voltas has been an underperformer in its segment so far. Despite the good market recovery, it did not participate but things seem to have changed after the recent quarterly results announcement

* The OI increased from 19 lakh shares to 38 lakh shares while still 32 lakhs shares have been rolled and the index consolidates at current levels, we can expect good short covering trend in the stock

* The volume recovery was seen just two sessions back when it moved up from Rs. 540 to above Rs. 575 levels indicating good buying at these levels. The delivery volumes in the stock have risen substantially in the last couple of sessions along with the up move. The stock has been a relative underperformer among its peers while recent activity suggests accumulation at lower levels

* The recent unlocking in the economy can also boost sales, which can drive the stock higher with the help of short closure

* Note: Call has been initiated on iClick2Gain on July 7, 2020

Buy Voltas in range of Rs. 560-575, Target: Rs. 675; Stop Loss: Rs. 511; Time frame: Three months

 

Havells

* Havells has been an underperformer in the last many months while the lockdowns further pressurised the situation. However, recently with the unlocking of the economy, we have seen renewed buying interest in the stock

* It is a stock where short positions are still quite high and it can witness short covering if the Nifty starts consolidating near these levels. The OI in the stock has remained quite sticky. This is expected to decline as the stock approaches the previous breakdown level of Rs. 650

* Good volumes were seen in the stock at lower levels of Rs. 520. Now again, a good pick-up in volumes was seen when it is moving above the last three months consolidation level of Rs. 575. This gives us belief that the break-outs may be sustained this time in the stock

* The consumer discretionary space was under continuous selling pressure in the last few months. It seems the rupee appreciation trend may bring some life in the stocks, which may be beneficiaries of this Note: Call has been initiated on iClick2Gain on July 7, 2020

Buy Havells in range of Rs. 580-595, Target: Rs. 690; Stop Loss: Rs. 532; Time frame: Three months

 

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