ICC World Cup 2023: How stocks stand to benefit from the cricket extravaganza

India hosts the ICC Men’s Cricket World Cup 2023, starting on October 5 with the first match set to take place between England and New Zealand at Narendra Modi Stadium, Ahmedabad.

Onset of the World Cup season will likely impact the country’s stock market. Noting that the quadrennial event is spread across ten cities, a report by Way2Wealth Brokers Pvt Ltd. stressed that sectors like travel, tourism, hotels, food and beverages will be the major beneficiaries.

As per the report, stocks that are likely to benefit this World Cup season include;

Reliance Industries Ltd (Buy range: ₹2,300-₹2,340)

The stock of Reliance Industries currently traded at ₹2,306.60 on the NSE at 10:44 am on October 4. Meanwhile, the Way2Wealth research sets the target price at ₹2,560- ₹2,600.  The report said that the stock has been trading within the rising channel with steady volumes on the weekly chart suggesting that positive uptrend and buy on dips would be suitable at mentioned key support levels.

The next resistance for the stock would be around 2452/2483 levels.

It noted that the company’s food & beverage and electronics business tend to see major sales uptick during marquee events like the ICC World Cup. The company, through its network of subsidiaries, holds significant control in Den Networks and Hathway Cable and Datacom Limited, having a dominant market share in the MSO cable and broadband market in India (providing satellite and broadband access to Tier 2 cities & towns) which are likely to see demand pick up during the event.

The Indian Hotels Company Ltd (Buy range: ₹405-₹415)

The Indian Hotels Company stock traded at ₹410, down by 0.73% on the NSE at 10:52 am on October 4. Way2Wealth Brokers increased the target price to ₹440-₹454, stating that the hospitality sector could benefit immensely. The company provides management services to various hotel chains, including Taj, Vivanta, Ginger, The Gateway, SeleQtions, and Trails.

The trend indicator ADX confirmed that the uptrend can be expected to accumulate from current levels. Reportedly, the stock has resistance at 421 and 434 levels.

The World Cup tournament is held across ten cities: Chennai, Ahmedabad, Mumbai, Bengaluru, Delhi, Kolkata, Lucknow, Dharamshala, Hyderabad, and Pune. The report said that most hotels are expecting a cent per cent occupancy in October- November 2023, and the demand is also likely to trigger a 150 per cent surge in costs. 

Jubilant FoodWorks Ltd (Buy range: ₹530-₹540)

Jubilant FoodWorks stock traded at ₹533.65 on the NSE, down by 1.23% at 11:03 am on October 4. “The stock gave a breakout from the symmetrical triangle pattern recently with steady volumes on weekly charts, which is a bullish continuation pattern, and it is confirmed that the uptrend can be expected to build up from current levels,” Way2Wealth reported.

It raised the target price between ₹580-₹600, noting that the company holds master franchise rights for two international brands - Domino’s Pizza and Dunkin’ Donuts. It also launched its first homegrown brand – Hong’s Kitchen in the Chinese cuisine segment.

Varun Beverages Ltd (Buy range: ₹920-₹935)

Varun Beverages stock traded at ₹911.15, down by 1.85% on the NSE at 11:16 am on October 4.

Noting that the stock has resistance at 990/1030 levels, Way2Wealth researchers are optimistic about demand, given under-penetration in core categories, strong acceptability for energy drink Sting, and entry into new categories.

It increased the target price between ₹1,060-₹1,100.

“If the stock sustains above this level, we would see the stock testing 1080/1120 levels in the short to medium-term scenario. The stock is expected to find good support at 897/884 levels,” the report added.

Westlife Foodworld Ltd (Buy range: ₹940-₹950)

Shares of Westlife Foodworld were trading at ₹958.35 on the NSE, down by 1.07% at 11:19 am on October 4. Way2Wealth inched the target price between ₹1,020-₹1,050. It said the stock has resistance at ₹1,000 and ₹1,025.

The stock has been trading above its short term EMAs over the past six weeks, the report said. It added that on the downside, the stock is likely to take support at 938 and 909 levels.

The company focuses on establishing and operating McDonald’s restaurants across West and South India, through its wholly-owned subsidiary Hardcastle Restaurants Pvt Ltd.

United Spirits Ltd (Buy range: ₹980-₹1,000)

United Spirits stock traded at ₹996.80 on the NSE at 11:23 am on October 4, down by 0.20%. Way2Wealth said, “the trend indicator ADX suggests a buy on declines can be expected in the near term.” It increased the target price of the stock between ₹1,120-₹1,150.

Interglobe Aviation Ltd (Buy range: ₹2,380-₹2,400)

IndiGo stock traded at ₹2,408 on the NSE at 11:28 am on October 4, down by 0.49%. Way2Wealth increased the target price to ₹2,600-₹2,640, stating that the aviation industry is expected to benefit considerably from the World Cup season. It said that the stock has been trading well above its major moving averages, suggesting long term trend continues to remain positive. 

Indian Railway Catering & Tourism Corp Ltd (Buy range: ₹670-₹690)

IRCTC stock was up by 0.28% on the NSE, traded at ₹705.50 at 11:31 am on October 4. Way2Wealth increased the target price to ₹770-₹800.

The report said that the stock has given a breakout from the symmetrical triangle pattern on weekly chart recently, suggesting positive bias in near term. It added that the momentum indicator MACD can surpass to achieve its previous highest level i.e.,752/774.

Zomato Ltd (Buy range: ₹95-₹105)

Shares of Zomato traded at ₹101.85 at 11:35 am on the NSE, down by 3.28%. Way2Wealth increased the target price to ₹115-₹120. Reportedly, the stock has been consolidating in a narrow range between 88 and 105 over the past eight weeks. However, it has managed to hold above its rising channel line, and this means buying pressure at lower levels.

It said that the stock technically has resistance at 105/106 levels.

Network 18 Media Investments Ltd (Buy range: ₹70-₹75)

Network 18 Media Investments stock traded at ₹68.85 on the NSE at 11:39 am on October 4, up by 0.44%. The brokerage increased the target price to ₹85-₹90. The company involved in television, print, digital, OTT, is also the largest shareholder in BookMyShow, the ticketing partner for ICC World Cup 2023.

The report noted that weekly momentum indicators are signalling a short-term range-bound phase. “Technically, breakout of either 57 on the downside or 76 on the higher side would dictate the near-term trend,” it added.

Entertainment Network (India) Ltd (Buy range: ₹150-₹160)

Shares of Entertainment Network (India) were trading at ₹162.15 on the NSE at 11:43 am on October 4, up by 0.59%. Brokerage Way2Wealth increased the target price to ₹177-₹184.

It noted that the stock has been signalling a V shape recovery after testing the recent low of ₹110. “Closing above the resistance line of 165-168 levels, it can move towards 177/184 levels,” the report added.