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Pick Axis Bank, SBI, V-Guard Industries, UPL, Adani Ports: Amit Gupta

According to Amit Gupta of ICICIdirect, one can buy Axis Bank, SBI, V-Guard Industries, UPL and Adani Ports.

January 18, 2018 / 11:18 AM IST

Amit Gupta of ICICIdirect told CNBC-TV18, "There are certain private banking or PSU banking stocks which have started participating from good support levels. For example, Axis Bank or State Bank of India (SBI) which had a good support near Rs 295-300, so, I think from the risk reward perspective, one can look at these stocks from the banking space."

"We had released a report eyeing the Budget in the coming month, so, we had given V-Guard Industries and UPL from that perspective. V-Guard is a beneficiary of simply the unorganised to organised shift and also the consumption story. If you look at the open interest positions in futures, in yesterday’s session alone, that was the highest closure of short positions in V-Guard. Almost 15 percent of closure was seen."

"If you look at the last eight-month mean price of V-Guard, it remained near Rs 200 levels, but within this period, Voltas had moved up by almost Rs 200, Rs 450 to Rs 650. So I think there is enough room now in V-Guard to start performing. Yesterday’s short closer gives a hint that the momentum is coming back in the stock."

"We are looking for a target of around Rs 265, one can keep a little stop loss near Rs 235 where a good delivery buying also happened, around Rs 234-235. So one can keep a stop loss there."

"Another one is UPL. The agro-chemical theme or anything related to rural, I think there is a possibility that these particular stocks can start performing. UPL has already seen almost 25 percent of correction. It was a performing stock before, but in the last six or seven months, it has totally underperformed the market, the shorts have accumulated like anything, open interest reached to the life high levels just because of this short accumulation."


"Now, we have seen green shoots of some closure of short positions. In yesterday’s session it happened, so, I think this is another short covering candidate, towards expiry and towards Budget one can have in their portfolio at a good level. It was trading above Rs 900 levels, so you are getting it at a good level. So just buy this and hold, I think it can move towards Rs 840 in the coming days," he said.

"We have seen good accumulation pattern in Adani Ports. Previously it was near Rs 440 and then declined towards Rs 390. If you look at the last three- months delivery buying, generally we have a Z-score of delivery pickup, a quantitative model we have and that has given us a 65 percent rise in delivery. So I think something is happening, the traders, they are accumulating the stock, they accumulated near Rs 400, and now it is near Rs 430."

"So my sense is it should move towards Rs 465-475. It should make a new life high and looking at the infrastructure push in the coming Budget, possibly this may be another stock – if the results are fine today, I think further leg up may be there in the stock in the coming days."
first published: Jan 18, 2018 11:11 am
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