Buy Hindustan Unilever (HUL) around Rs 380, says Amit Gupta, Head-Derivatives -ICICI Direct.
Gupta told CNBC-TV18, "We initiated a long call on Hindustan Unilever on Rs 380 levels and we had a target of around Rs 410-420. Before the result only we saw that Rs 410 was achieved. But still I am not very bearish on Hindustan Unilever because I believe that the shorts are still stuck up in the stock. Because if you look at the kind of pattern in Hindustan Unilever for the last one year we were seeing that around Rs 360 the people were shorting the stock and they were covering the positions around Rs 320."
He further added, "The moment we saw a breakout above Rs 360 we saw immediately the stock formed a base around Rs 380 after touching Rs 400 and above levels. That Rs 380 was not breached at all. Those particular short positions in the breakout they are still there in the stock looking at the open interest current status. Till it is not coming below Rs 380 we should initiate any short call in Hindustan Unilever. In the pharma that is we are seeing initially and it is possible that HUL also may start again seeing the fresh buying around Rs 380. So around this level it's a good buy call."
