Buy Wipro, Mindtree, Kajaria Ceramics: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "We have two stocks from the IT space because what we believe NSE IT Index has room of another 10 percent upside. It is on the verge of a breakout."

"The midcap IT space  was performing. We saw how Hexaware Tech or NIIT Technologies performed but I think now the heavy weights which remained laggards can start performing and can provide support to the Nifty also when the private banking space is under some pressure."

"Wipro which had a buyback of around Rs 320 levels and which remained quite resilient did not fall below Rs 280. If you look at the last couple of series, almost 15 percent of open interest addition was there on the long side. It is trading near Rs 300, but 295 Put has become the highest. That shows that every limited downside from here on and on the higher side the Call writers are shifting the position to the higher strike."

"It means there may be some upside left from here and it can move towards Rs 325-330 in the coming sessions. So, towards expiry IT stock may be a good play on the long side. We are buying Call option, it is a long series still and 305 Call option remained quite subdued because the Call writers were active. I think these premium will start moving up. It may be a doubler in this particular series. So, we are recommending 305 Call at a premium of around Rs 4-5," he said.

"Another pick from the IT space is Mindtree. We have seen the other midcap IT stocks performing but Mindtree has remained quite laggard. It remained near Rs 450-500 level for quite some time. If you observe the last 6-7 months, it has been forming higher bottoms very slowly. Previously, it fell to Rs 420 and this time it fell to Rs 450. Previously it made a top at Rs 500 and then the recent top was Rs 550."

"So, this particular move which has started now may result in a higher top formation. It should surpass Rs 550 levels and right now it is near Rs 484. So, there is a good room on the higher side for Mindtree."

"The open interest position is also coming down, so the positional traders who were short are now reducing their positions which may be a good pullback for the stock in the short-term."

"Kajaria Ceramics has already under-performed. It had a correction of more than 40 percent from Rs 750 to almost Rs 450. From April onward, it is consolidating near Rs 700. What we are observing is that whenever it declines below Rs 700 there is an immediate buying interest emerging at lower levels around Rs 650-660 which pulls back the stock."

"The open interest had increased by almost 55 percent in the last few series, so people were trying to go short but the underlying was not falling beyond the point and that is why towards this expiry this may be a good short covering candidate. So, we have started buying this now near the current level and we are targeting around Rs 755 at least in the short-term," he added.