Buy Arvind; expect good momentum with limited downside in Torrent Power: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "Arvind spent almost the last couple of years near Rs 400 and Rs 420 and in between we had seen few corrections towards Rs 360 levels. The current volumes are almost at two year high. It has taken out this 2016 high of Rs 420 which was the same in 2017 at Rs 420. It has taken out these levels on the back of a significant closer of short positions."

"We have seen that the open interest has come down by almost 35-40 percent, so it gives us signs that possibly it is forming a base bear Rs 420 and it is moving towards Rs 500 levels. I think demerger news which can pan out possibly in the coming 5 or 6 months and before that only these short coverings are panning out and it can be a good momentum stock eventually after this breakout."

"Second one which comes to the list is Torrent Power. Power stocks had consolidated for a pretty longer period and as we are entering into 2018 we have started seeing that in futures the open interest is getting doubled."

"If you look at Torrent Power from 4 million shares it has come to 8 million shares in this particular recovery above the 2015 high. We believe this addition is going to be rolled over now in the coming series which will provide much momentum and limited downside in this particular stock," he added.