Dec 03, 2012, 02.16 PM | Source: CNBC-TV18
Bajaj Auto can test Rs 2060-2100, says Amit Gupta of ICICI Direct.
Amit Gupta (more)
Head- Derivatives, ICICIdirect.com | Capital Expertise: F&O
Gupta told CNBC-TV18, "If you look at the FII inflows, consistently it has been coming into the auto pack. It started with the four-wheelers and we saw how Mahindra & Mahindra (M&M) and Maruti Suzuki started moving up. You can keep Bajaj Auto also in place just like M&M because after four-five months of consolidation we are seeing that this stock also made new high."
He further added, "In the last one month period when it was around Rs 1,830 the open interest was around 10 lakh shares and now also when it started moving up because we saw on 27th November it started moving to more than Rs 1,900, now the open interest is only 10 lakh shares. So I do not see people jumping into the stock to buy. So it gives me a sense that there is lot of steam left in the stock to move up from here and I assume that on the higher side Rs 2,060-2,100 kind of levels can be met in the stock looking at the pattern of open interest and the price pattern also."
"On the downside Rs 1,830 one should keep a stop; technically 21 day moving average is also placed around Rs 1,840 below which it has not been able to sustain over the period. So it could be a good stop loss, looking for a target of Rs 2,060."