1 OMC, 1 FMCG Stock: Brokerage Picks 2 Stocks As Tech Stars, Expects 7-11% Upside In Short Term

Indian Oil Corporation and Godrej Consumer Products are two latest tech stars of Religare Broking under the oil marketing companies (OMCs) and FMCG segment. The two stocks have the potential to rise in the range of 7% to over 11% in the coming days. The brokerage believes Indian Oil stock is relatively higher in strength as OMCs record recovery, while Godrej Consumer is a healthy bet amidst mixed trends in FMCG.

Highlighting tech stars, Religare Broking said it comprises "Tech stars, our 2-stop picks filtered based on momentum from our coverage universe. It's scheduled weekly on every Monday or the first working day of the week. Please note, that all these recommendations are 'valid for taking position' in the next two sessions from the date of recommendation and in the given range. The initiated recommendations will stand closed, in case the target or stop loss not met by the end of the next week."

Indian Oil Corporation:

In its note, Religare Broking said, "We are seeing recovery in the oil marketing counters wherein IOC is showing relatively higher strength. It has recovered strongly after testing the support of a short term moving average i.e. 20 EMA on the weekly chart and is likely to inch gradually towards the record high now. We suggest creating fresh longs in the mentioned range."

Hence, the brokerage recommended buy in the range of Rs 92 to Rs 93 for a target price of Rs 102 with a stop loss of Rs 89.

On Tuesday, at the time of writing, Indian Oil shares traded at Rs 91.82 apiece, down by 3.52% on BSE. The stock ranged between Rs 95.90 apiece to Rs 91.41 apiece during the day. It has a market cap of nearly Rs 1.30 lakh crore.

Nevertheless, from its 52-week low of Rs 65.20 apiece, IOC shares are up by nearly 41% on BSE. Year-to-date, the stock gained by nearly 18%.

Indian Oil is one of the largest and most trusted corporates and the top-ranked Indian energy PSU in the Fortune 500 rankings, with a Revenue from Operations of Rs 9,34,953 crore for the financial year 2022-23. A diversified, integrated energy major, Indian Oil has a presence in almost all the streams of oil, gas, petrochemicals, and alternative energy sources.

Godrej Consumer Products:

According to the brokerage, the FMCG pack is witnessing a mixed trend and Godrej Consumer is among the steady performers. It has respected the weekly trendline for the fifth time and inching gradually higher now. The chart pattern indicates recovery to strengthen in the coming weeks.

Thereby, the brokerage has recommended buying in the range of Rs 1020 to Rs 1024 for a target price of Rs 1085 with a stop loss of Rs 990.

On BSE, Godrej Consumer shares advanced by 2.2% to Rs 1010.50 apiece on Tuesday. The stock ranged from Rs 1049.65 to Rs 1009.85 per share respectively. It has a market cap of over Rs 1.03 lakh crore.

From its 52-week low of Rs 793.70 apiece on BSE, the stock is up by over 27% currently. YTD, the stock surged over 13%.

Recently, the company signed a Memorandum of Understanding (MoU) with the State Government of Tamil Nadu. As a part of this MoU, GCPL will establish a state-of-the-art manufacturing facility in the state, making an investment of Rs 515 crore over the course of the next five years.

Godrej Consumer Products is a leading emerging markets company. The FMCG player enjoys the patronage of 1.2 billion consumers globally, across different businesses. It ranks among the largest Household Insecticide and Hair Care players in emerging markets.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.