See upside of 10-15% in GAIL, Petronet, buy Havells at around Rs 500: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "We are picking up the oil and gas stocks. The way Indraprastha Gas (IGL) and Mahanagar Gas have performed, I think that has been a very good move. Now, what is left is possibly GAIL India and Petronet LNG which can start performing because both of these stocks have gone into the last four months period of consolidation and now they are coming out from that particular consolidation on the back of good cash delivery and also the long positions in futures space."

"For example in GAIL India, Rs 360 to Rs 390 was the range from the month of May and now it has taken out Rs 390, in fact at Rs 375 precisely, there was a multi-month high delivery pickup. It remained sideways and then this move started. In futures the total open interest in both of these stocks is still lower. So, there is enough headroom for fresh long positons to come in these stocks and the momentum can come back."

"GAIL India saw an addition of 11 percent in yesterday’s session and overall for this particular series, still it is not very steep. So, I think there is enough headroom and that is why we are recommending a target of around Rs 455-465 in the coming sessions."

"Before the split, Petronet LNG was around Rs 400 and we saw that it took a lot of time to come out beyond Rs 400. It spent time near Rs 205-200 levels for the last few months and then this move has started. So, this is also a contender where around Rs 220 there was almost four to five months of high delivery pickup and then on the long side in futures almost 9 percent addition," he said.

"So in both these stocks from the oil & gas space I think, the momentum is there to pick up now and we should look at least 10-15 percent of target on the higher side."

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Amit Gupta

Head of Derivative|ICICIdirect

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"After the last quarterly results, especially in Havells India, there was a down tick. It moved towards Rs 450-440 levels. However, that was the peak of the previous years. So, once it took out those levels, it formed support there only and that is why we have seen some move on the higher side. From the open interest perspective, we have seen almost 15 percent cut. So, that clearly shows the shorts are getting exited now and still I believe the risk reward is favorable in the stock if you look at the other stocks in the consumer space."

"So, from Rs 500 or Rs 510 levels, I think it is a good accumulation range for Havells India. We can target around Rs 565 in the coming sessions. So the stock looks good from the risk reward perspective," he added.

"The low beta FMCG stocks like Dabur India, Colgate Palmolive and Nestle, they have started participating off-late and Rs 300 now has become a good base for Dabur. That is why I think Rs 324-325 is very much possible in the stock now."