HDFC Securities in its report dated August 2 has beneficial to purchase the inventory of Avanti Feeds. That is the brokerage’s e-margin positional choose.
In regards to the inventory:
Avanti Feeds is a small cap firm with a market capitalisation of Rs. 6693 crore. The corporate is into manufacturing of prawn and fish feeds, and is a shrimp processor in addition to exporter. Its main merchandise are shrimp feed and processed shrimp.
Shopping for vary, goal and funding horizon:
The purchase on the scrip of Avanti Feeds is usually recommended for 1-3 months. Shopping for vary is given as Rs. 460-478. Targets given by the brokerage are 514/620. On the place if taken, the beneficial cease loss is Rs. 430.
On the present market value of Rs. 492, potential buyers within the inventory can possible make as much as 26% return in a brief span.
Technical observations as per the Brokerage on the inventory of Avanti Feeds
Avanti Feeds has not too long ago corrected from an intermediate excessive of 639 examined in January 2022 and
discovered assist on the 384 ranges in Might 2022, which additionally roughly coincides with earlier intermediate
lows of the inventory.
The inventory has since then bounced again and made larger bottoms. It has additionally reversed its latest brief
time period downtrend within the course of. A brand new uptrend was confirmed when the inventory took out the earlier
swing excessive of 462 on Monday on the again of above common volumes.
Technical indicators are giving constructive alerts because the inventory is now buying and selling above the 20 day and 50
day SMA. Weekly momentum indicators just like the 14-week RSI have bounced again from oversold ranges
and are in rising mode now.
With the intermediate technical setup too trying constructive, the brokerage believes the inventory has the potential tomove larger within the coming weeks and due to this fact suggest a purchase.
Disclaimer: The inventory beneficial above is that by the brokerage. Readers mustn’t construe the story as an funding recommendation into the inventory and will have interaction in their very own due-diligence earlier than betting on such market-linked securities.
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Story first revealed: Thursday, August 4, 2022, 9:52 [IST]