Keep Rs 470 stoploss in HCL Tech: Amit Gupta

Keep Rs 470 stoploss in HCL Tech, says Amit Gupta, Head - Derivatives, ICICI Direct.

Gupta told CNBC-TV18, "In 2011 we saw that lot of pair trades were found where the people were going long in tier one TCS and Infosys and they were going short in Wipro and HCL Tech. This is where TCS and Infosys were continuously trading above critical moving averages and these stocks were going down but the reversal has started already happening if you look at the open interest positions since the last quarter we have seen that in all these four stocks around 40% closure in open interest we have seen. So if you look at the long liquidation it has happened mostly in Infosys and TCS and if you look at the short covering that is already seen with prices how they are jumping in Wipro and HCL Tech and now from hereon HCL Tech and Wipro are going to perform."
He further added, "I think HCL Tech Rs 470 below it has not come down yet since it is consolidating from the month of Feb, so I think that is a critical level. Your stop losses should be around Rs 470 if today you want to trade in that stock."