Colgate very good trading bet: Devang Visaria

ET Now spoke to Devang Visaria, Chief Strategist, devangvisaria.com, on his views on Colgate.

Your thoughts on Colgate?

We like the whole FMCG space be it Colgate, Hindustan Lever or ITC. We selected Colgate because you had very strong breakout in month of September. In fact it has given its highest monthly and quarterly close in the month ended September. So there is a very strong momentum in this one. Also the stock has given a pullback to its short term moving averages. So from a risk reward ratio, this is a good trading bet and the trading targets are Rs 925-Rs 930 but on a medium term basis, we are looking for targets of Rs 1000-Rs 1050 for Colgate.

The stock does not really have any volumes and how do you play something which has no volumes?

The stock is in the F&O and you have volumes of closer to 1,25,000 in the F&O. So it is more of leverage traded player right now.

So you are saying better to play the futures.

Yes, better to play the futures because there you get the liquidity. Otherwise cash market, you would not get any liquidity.