In Wipro Rs 370 has become the intermediate support and from hereon the open interest base in the stock may start declining, so the stock is heading towards Rs 440 levels, says Amit Gupta of ICICI Direct.
Gupta told CNBC-TV18, "We are into a market, which may not crack that much, but it may remain rangebound a little bit and with some sort of positive bias for the stocks that may continue and finally I think the Nifty may scale upto 6100 or 6150 levels. Now having said this if we look at the options build up it is more at 5900, which is a second highest put base and on the higher side it is at 6200 levels. So, I think that is a broad range for the market for the time being."
He further added, "We can go long in Wipro and simultaneously go short in Nifty Futures because what we believe after the Infosys’ result announcement the short covering is likely to come into the other peers and Wipro, which has been performing much better actually in the last 3 or 4 weeks – we feel that Rs 370 has become the intermediate support for the stock and from hereon the open interest base in the stock may start declining. So, I think the stock is heading towards Rs 440 levels."