United Spirits jumps 6% after selling its 32 liquor brands to Inbrew!
5paisa Research Team
Last Updated: 11th December 2022 - 07:47 pm
The shared of MCDOWELL-N has zoomed over 6% after the company decides to sell its portfolios of 32 liquor brands to Inbrew for a deal of Rs 820 crore.
The 32 brands include Haywards, Old Tavern, White-Mischief, Green Label and Romanov. Management said that it is a significant move to reshape the portfolio in its mission to deliver sustained double-digit profitable top-line growth. This has cheered the investors and the stock has jumped over 6%.
On the technical chart, the stock has seen a strong bounce towards the level of Rs 830 in just three trading sessions. It has jumped over 12% from its prior swing low and is above its 20-DMA. During this period, the stock has recorded above-average volume which is greater than the 10-day and 30-day average volume. Thus, the price structure is bullish.
The technical parameters indicate an improvement in the stock’s strength. The 14peirod daily RSI (51.42) has jumped significantly and points northwards. The MACD has given a bullish crossover while On Balance Volume also indicates an improvement from the volume’s perspective. To add further, the stock has risen over its 38.2% Fibonacci retracement level from its prior down trend. Thus, the short term outlook is bullish.
With such positivity, the stock is expected to trade well in the coming days. It has the potential to test the 200-DMA levels of Rs 850 and above. Moreover, it presents a good opportunity for swing trading. Traders can expect good gains from this stock as per the technical analysis.
United Spirits Limited is a spirit's company engaged in the business of manufacturing, purchase, and sale of alcoholic beverages. It is large cap company with a market capitalization of about Rs 59800 crore. The stock is in focus today because of its corporate action and is likely to be traded heavily in times to come.
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