United Spirits Ltd, which rose more than 40 per cent in the last year compared to about 8 per cent rise seen in the Nifty50, broke out from a 6-year consolidation in 2021 but has been consolidating in a narrow range since then.
The stock with a market capitalisation of about Rs 60,000 crore hit a 52-week high of Rs 1,019.75 on 9 November 2021. Since then the trend went sideways, but the stock has been finding support near the neckline (breakout) area of the consolidation range, suggest experts.
moved in a range of about 500 points where Rs 800 was at the higher end of the range, and Rs 350 level was at the lower end of the range. The stock finally broke out of the range in October 2021 on the monthly charts.
Stock Radar: Accumulate United Spirits for a target of Rs 960-1020, recommends Ajit Mishra
Description: Investors who missed the opportunity before to invest in United Spirits can look at entering the stock or accumulating the stock on dips between Rs 800-840 for a target of Rs 960-1020 in 1-2 months, suggest Ajit Mishra of Religare Broking Ltd.
It hit a 52-week high of Rs 1,019 in November 2021 but failed to hold on to the momentum. However, the stock is finding support near the neckline of the breakout area placed above Rs 800 levels.
Investors who missed the opportunity before can look at entering the stock or accumulating the stock on dips between Rs 800-840 for a target of Rs 960-1020 in 1-2 months, suggest experts.
ET CONTRIBUTORS
Mcdowell-N (United Spirits) has had a prolonged consolidation phase that lasted nearly 6 years (2015-2021) and it finally witnessed a breakout from the same in October 2021.
“After the initial surge post-breakout, it has been trading with a corrective bias for the last six months. Now the neckline (breakout) area of the consolidation range is acting as strong support and we’re seeing buying interest emerging on every dip,” Ajit Mishra, VP – Research,
Broking Ltd, said.
“It’s offering an excellent opportunity to enter those who missed the chance earlier. Positional traders & investors can accumulate within Rs 800-840 zone and hold for targets of Rs 960 & Rs 1,020 for the next 1-2 months. Traders should maintain stop loss at Rs 760,” he said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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