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ICICIdirect Executive Posted on 04:24pm 23-Sep-2022

Quant Pick - Marico

Time frame: Three months

Derivatives & Quantitative Outlook

In the recent Nifty consolidation, midcap and small cap stocks are witnessing a catch up exercise. We believe the Nifty may continue its consolidation for some time after the sharp up move seen in the last couple of months. However, a fresh up move is likely to be seen in FMCG stocks where apart from sectoral heavyweights, select midcap stocks are likely to perform in the coming sessions. Stocks like Marico, which has been witnessing delivery based buying interest, is likely to resume its positive momentum on the back of fresh positions in the futures segment.

Leveraged positions in the stock have declined noticeably in the last couple of months as the stock witnesses a short covering trend. The current open interest in the stock is one of the lowest seen in six months below 1 crore shares while the stock has shown an inclination of up move with long accumulation whenever open interest moved to below 1 crore. We have seen initial signs of fresh long additions in the stock, suggesting further upsides on the back of fresh accumulation.


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