Wipro has target of Rs 445-450, says Amit Gupta, ICICI Direct. The stock may not come below Rs 400 levels immediately. So, one should trade long, even if you are seeing 1 or 2 percent of decline in the stock.
Wipro has target of Rs 445-450, says Amit Gupta, ICICI Direct.
Gupta told CNBC-TV18, "We are betting more on Wipro. If you look at the last two months scenario in the stock, consistent cash buying was seen around Rs 370-380 kind of range. The stock has remained quite subdued if you compare to Tata Consultancy Services (TCS) or HCL Tech, but overall we have seen that the open interest in stock is still at elevated level. I think the shorts are still there."
He further added, "Look at what happened before the results, the stock tried to hold Rs 400, but did not sustain above that, finally came down and I think this is where the long traders did not find the courage to go long in the stock and finally it opened above Rs 400 levels and continued to move up."
"If you compare shorts which were positional shorts and were just kept on rolling the positions from series to series, they have clearly got stuck up. I think the stock may not come below Rs 400 levels immediately. So, one should trade long, even if you are seeing 1 or 2 percent of decline in the stock. I think Rs 410-415 kind of levels can be looked at to start buying in the stock. My target for the stock on the higher side is Rs 445-450 levels and I will put my stop loss around Rs 390, because I do not see these levels to be met immediately. The upsides could be more."