Federal Bank can move to Rs 535, says Amit Gupta

Federal Bank can move to Rs 535 in coming session, says Amit Gupta of ICICI Direct.

Gupta told CNBC-TV18, “If you look at the private banking and we have observed over the last couple of weeks that there have been continuous long additions and Federal Bank has not been able to perform that much to the extent of the other peers. I think the cash buying which has started somewhere close to Rs 470-480 levels and the long build-up also have started from those levels only. I think the stock may move towards Rs 535 in the coming sessions. So your stop loss should be below Rs 480 and look for this target in the coming sessions.”
He further added, “We have already seen what is happening in metals. It started from the non-ferrous and now it is slowly coming down to the ferrous stocks like Tata Steel has come above Rs 410 levels. We are positive on DLF in real estate because Rs 215 was a very critical level, it was a good retracement of the recent upmove we saw towards Rs 226-227 another thing is Rs 220 call was heavily sold in DLF last couple of months and we were not seeing closure in that to that extent but in this upmover we have seen that the closure has also started in the strike so it is possible that DLF may see another 5-8 percent of upmove from here.”
“We are positive on Reliance in oil and gas space. I think this is one of the heavyweights which have not shown its colour so far. If market has set a platform for the stocks to perform, it is possible that Reliance also may see some kind of short covering because we know what kind of positional shorts have been there in the stock. So once that starts covering the stock may go up to Rs 880-885 levels.”