AU, Info Edge among top April bets

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AU, Info Edge among top April bets


Stock futures of banks, consumer and power companies are witnessing action in the April series amid the uncertainty over the growing cases of Covid infections across the country. IT and select gas stocks are getting bullish bets ahead of the fourth quarter earnings season. ET takes a look at stocks that are top trading picks of the April series in the futures segment

AU SMALL FINANCE BANK
CMP: Rs 1,267.9

OI Change in April series: 236.5%

Share Price Change in April series: 10.2%

AU Small Finance Bank became a part of the Bank Nifty from Wednesday, which has sparked bullish positions in the bank. “AU is coming into the Bank Nifty now. That’s why it seeing a high open interest,” said Chandan Taparia, derivative analyst, Motilal Oswal. “Overall outlook is positive with support at Rs 1,175. It can go to Rs 1,300 in the near term,” said Taparia.

INFO EDGE INDIA
CMP: Rs 987.15

OI Change in April series: 50.9%

Share Price Change in April series: -3.2%

After a sharp surge in the last few months, the stock is seeing the addition of short positions. “Info Edge has surpassed all valuation benchmarks and is up 150% over the last year. The rise in valuation of Zomato and imminent public listing have contributed significantly to the rise of the shares,” said Nomura. Maintaining a hold rating, Nomura said Zomato listing may still lead to some near term excitement but it is already priced in

TATA CONSUMER
CMP: Rs 650.15

OI Change in April series: 40%

Share Price Change in April series: 5.7%

The new entrant to the Nifty is on the radar of bulls. Nomura recently initiated coverage on the stock with a buy rating and a target price of Rs 750 as it is bullish on the company’s makeover to become a multi-category fast-moving consumer goods company from a food and beverages company. Taparia of Motilal Oswal sees the stock rising to Rs 675 in the near term

GAIL INDIA
CMP: Rs 140.15

OI Change in April series: 89.3%

Share Price Change in April series: 9.5%

Despite the recent volatility in the market, GAIL has seen a build-up of long positions. Several brokerages have retained buy rating on the stock including Goldman Sachs and CLSA. Retaining a target price of Rs 170, CLSA said positive macro conditions across liquid natural gas trading, liquefied petroleum gas production and petrochemical segments should ensure strong March quarter results for GAIL Despite favourable tailwinds, GAIL trades at a core price-to-earnings of 7.1 times, a 40% discount to the long term average, said CLSA

CUMMINS INDIA
CMP: Rs 895.35

OI Change in April series: 34.5%

Share Price Change in April series: 4.65%

There is rising interest in Cummins India as the stock has given a breakout on technical charts. “The stock has given a consolidation breakout and is trading at multiple years high. It can go to Rs 980 in the near term,” said Chandan Taparia of Motilal Oswal.



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