Immediate support for Wipro at Rs 440, says Amit Gupta

According to Amit Gupta, Head-Derivatives of ICICI Direct, Rs 440 will remain an immediate support for Wipro. He feels if market sees some profit booking then I do not expect that kind of fall in Wipro from current levels.

Gupta told CNBC-TV18, “If we look at Wipro among the IT lot it has remained laggard actually for quite a long when Infosys Technologies and Tata Consultancy Services (TCS) started performing, but this stock was not performing. In fact there were two bad news, which impacted the stock. One was the quarterly results. When it came down 7-8 percent from Rs 440 levels and then it was going out from Nifty or the IT index, so that impacted the stock.”
“But when it was coming down to Rs 390 or Rs 385 we saw that immediate buying was lined up in the stock and incidentally that was at 50-day moving average. From there we have seen two bounces and now I think the shorts have stuck up. So they are closing their positions. It has also surpassed the last quarterly result high of Rs 440. I feel that will remain an immediate support and if you are going long in Wipro from here it maybe a good short covering candidate. So if market is just stable here only then you will make money in this if you are going long in Wipro and short in Nifty. And if market sees some profit booking then also I do not expect that kind of fall in Wipro from here,” Gupta added.