Buy IDBI Bank on dips, says Amit Gupta, ICICI Direct.
Gupta told CNBC-TV18, "One peculiar feature of IDBI Bank has been that there is consistent cash buying in the stock starting from the level of Rs 108. We have seen that in the month of December. It just consolidated above Rs 108 levels, whenever it was coming down to Rs 108 there was heavy cash buying happening and now it has taken out the higher band of the December series, which was Rs 114."
He further added, "I think any decline toward this level should be utilised to buy again because if you look at the open interest position in the stock future – still it is at the elevated level – that means the short covering still has to come in the stock. This is why I am betting for a target of Rs 126-128 on the higher side. I think the declines towards Rs 114 can be utilised to buy. Keep your stoploss around Rs 110 because I don’t think it should come around the consolidation of Rs 108 or Rs 110 immediately."