Amit Gupta of ICICIdirect
Amit Gupta of ICICIdirect told CNBC-TV18, "The power and power equipment space is looking better. Power Grid was the leading, but now it has gone for some consolidation and I think the lead will come from NTPC. Now we have already seen NTPC corrected from Rs 185 to 175 and I think it has formed a good base near Rs 175 now and it is moving towards Rs 185 again. We have started recommending this stock to our clients."
"If you look at the open interest position for the last two series, the long positions were getting rolled and in this particular series we have already seen 12 percent of increase in the open interest and that is in the long side. My sense is the stock should pick up momentum as we are moving towards Budget. When it is taking the lead, I think the power equipment space which has been laggard for quite some time now, you can see some kind of short covering there."
"We have already seen green shoots in Cummins India and Siemens in the last one week when the positions are getting closed. Siemens fell towards Rs 1,200. The open interest was almost near the life highs, then it had a further decline in price but the open interest did not increase much. That means whatever shorts were formed it did not increase from those levels and then we have seen almost 15-17 percent of short closers. I think it is the starting of short covering in Siemens India before the Budget and it is possible that the stock can move towards Rs 1,300 or Rs 1,340 levels in the coming sessions."
"From the risk reward perspective it is a good pick from these levels and the same is going to happen with Cummins India."
"We have already seen Cummins India move from a very high volume base of Rs 870, it moved beyond Rs 900 and now it is not falling below those Rs 900 levels. It should act as a good support and should move towards Rs 965-975.""We have seen the same pattern happening in Siemens with Cummins India as well and almost 9-10 percent of short closer is seen in this particular stock. So, I think NTPC should take the lead and power equipment space now should follow in terms on the back of a short covering in the coming sessions," he said.