ITC can move towards Rs 300, Ambuja Cements Rs 275: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "Amidst this consolidation, we are recommending Ambuja Cements and ITC Call options to our clients because we still believe there is enough short covering that can happen in both of these stocks. In Ambuja Cements 250 Call Strikes the implied volatility (IVs) are very subdued near to 21 or 22 percent. and I think from here the surge of the premium can be seen. Yesterday only we saw a very substantial short closure in this particular Strike." 

"In the ITC if you observe, in 280 Call Strike yesterday there was almost 7,00,000 shares being closed and this was the highest Call Strike. Still people are little bit skeptical in ITC and that is why in futures also the short positions are still intact. Yesterday almost 6 percent of closure was there in future segment in ITC. So my sense is among the heavy weights ITC can move towards Rs 300 or beyond levels and Ambuja Cements can move towards Rs 270-275 in the coming days," he said.