Buy Colgate Palmolive in the range of 1500-1530,
Target: | 1735; Stop Loss: | 1408;
Time frame: Three months
Despite broader weakness, select consumption stocks have been witnessing continued buying interest and are
defying the market weakness 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 approaching its life-time highs even in such a market scenario filled with jitters
Colgate has also seen significant closure in open interest during the market decline while the OI came down to 1.2 million shares from 3.5 million shares in February. However, it has started its up move after retesting its 2019 lows near 1100. Since then, its OI has increased sharply by almost 50% indicating ongoing long additions. As it has already moved towards its breakdown levels of 1500 seen in February, we expect it to move towards its life-time
high levels in the coming weeks
The major Call options base of Colgate was placed at the 1400 strike for the April series. As the stock has started trading above these levels, upsides are likely to continue in the coming sessions
The stock has seen major delivery based activity in January near 1300. Since then, it has failed to sustain above these levels. As it has started trading above these levels, we expect further buying momentum to be seen.
The stock was included in MSCI India in November 2019. Hence, in case of resumption of FII investment, it is likely to
witness significant upsides.
In the recent market weakness, Colgate had moved below its long term mean line but has moved above it once again.
Currently, mean levels for the stock are placed near 1300. We expect the positive bias to remain intact till it trades above these levels.
The material on this site is provided for information purpose only. This associated sites do not accept liability for your use of the materials provided.
Target: | 1735; Stop Loss: | 1408;
Time frame: Three months
Despite broader weakness, select consumption stocks have been witnessing continued buying interest and are
defying the market weakness 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 approaching its life-time highs even in such a market scenario filled with jitters
Colgate has also seen significant closure in open interest during the market decline while the OI came down to 1.2 million shares from 3.5 million shares in February. However, it has started its up move after retesting its 2019 lows near 1100. Since then, its OI has increased sharply by almost 50% indicating ongoing long additions. As it has already moved towards its breakdown levels of 1500 seen in February, we expect it to move towards its life-time
high levels in the coming weeks
The major Call options base of Colgate was placed at the 1400 strike for the April series. As the stock has started trading above these levels, upsides are likely to continue in the coming sessions
The stock has seen major delivery based activity in January near 1300. Since then, it has failed to sustain above these levels. As it has started trading above these levels, we expect further buying momentum to be seen.
The stock was included in MSCI India in November 2019. Hence, in case of resumption of FII investment, it is likely to
witness significant upsides.
In the recent market weakness, Colgate had moved below its long term mean line but has moved above it once again.
Currently, mean levels for the stock are placed near 1300. We expect the positive bias to remain intact till it trades above these levels.
The material on this site is provided for information purpose only. This associated sites do not accept liability for your use of the materials provided.