JM Financial said F&O stocks such as Cholamandalam Investment and Finance Company Ltd , Voltas Ltd, Polycab India and Persistent Systems have higher exhibited a stronger seasonality in February.
The consumer durable stock rose from Rs 859 as of December 15, 2023 to Rs 947 recorded on 22nd December 2023 which translates into an upside of over 10% in a week.
The stock has consolidated in a narrow range since September 2022, where Rs 900-930 levels acted as stiff resistance, while on the downside levels above Rs 700 acted as crucial support. The stock is on the verge of a breakout above Rs 930 level on the weekly charts. Although it did touch a 52-week high of Rs 957 on 20th December 2023, but failed to hold on to the momentum and witnessed some profit-taking.
Voltas is starting to fight back for market share and checks suggest double-digit growth for Voltas’s RAC segment (margins remain under pressure), Nuvama said in a recent note.
ICICI Bank is now showing signs of a revival after undergoing through a shallow correction in July, where the prices declined from the high of Rs 1,008 to all the way down to Rs 899.