ICICIdirect issued Buy call on Grasim . The stock broker recommends buying stock for target of Rs 4,350 in the range of Rs 3,640-3,680 in three months time in its report.

Commenting on the investment rationale, the stock broker said, "Recently, Grasim has outperformed the rest of its peers and is moving steadily towards its June highs on the back of short covering. We expect Grasim to surpass these levels and witness fresh upsides towards Rs 4,300 levels in the days to come. Unlike most cement stocks, Grasim has witnessed closure of open interest in the last couple of months prompting the stock to move higher. In the last month itself, the stock has witnessed closure of 16% open interest."

"Grasim is moving closer towards its life-time highs of Rs 3,700, another round of short covering is likely to trigger fresh upsides in the stock. It witnessed profit booking and slipped towards Rs 3,300. Once it is above Rs 3,500, one can assume a fresh up move in the stock is going to start now. We believe the stock was accumulated in the recent profit booking leg. As it has convincingly surpassed these accumulation zones, the positive bias remains intact in the stock," it added.

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