Go long on Tata Motors (DVR): TS Harihar

Go long on Tata Motors (DVR), says TS Harihar, Co-Head Institutional Derivatives, ICICI Securities.

Harihar told CNBC-TV18, "What we have been telling a lot of our investors is, the Tata Motor DVR traditionally quotes at a discount to the Tata Motors stock. If you look at it historically, whenever the discount gets to about 140 points, which is the equivalent of about 50% of the Tata Motors price, that is when the convergence starts and it gets back to about 33%."
He further added, "We saw a similar thing yesterday when the discount went to about 50% a few days back, the stock of Tata Motors DVR started rising and there have been a lot of buy reports that are started coming on the DVR. So what we are recommending is a pair trade is, go long on Tata Motors DVR to play on the convergence and go short on the Tata Motors stock because that is a stock that looks a little stiffly priced because it