According to ICICI Direct, Consumption stocks have shown a relative weakness in the recent market consolidation.
ICICI Direct's research report on United Spirits
Derivatives & Quantitative Outlook
Consumption stocks have shown a relative weakness in the recent market consolidation. However, stocks like United Spirits remained significantly immune to the market volatility and witnessed buying interest at every decline. The stock has moved to its highest levels seen since mid-March while the Nifty is still struggling around 9000 primarily due to underperformance from the banking space. We believe United Spirits is likely to move further higher in the coming weeks on the back of fresh long additions. The open interest in the stock declined sharply in the last couple of months, indicating closure of positions amid market weakness. However, despite the recovery in stock prices, open interest remained low. We believe the ongoing outperformance of the stock will attract fresh positions in it. Long addition is likely to provide momentum in the stock.
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