Buy Divis Labs, may move towards Rs 1250-1270: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "I have been pitching Divis Laboratories, before the bonus this time the the open interest got doubled. People went short in the stock because generally after this corporate action people start booking in half of the equity and that is why they hedge their positions. However, now if you see the cut in the open interest, it has been really sharp in the last two or three sessions though the stock didn’t move much but we saw almost 10-15 percent cut in open interest. This is a very good sign and it has almost been resilient.""If you see the move from Rs 1,000 to Rs 1,100 that time, Nifty was just hovering in a range and then the delivery pick up happened at Rs 1,100. The weekly volumes are almost four to five year higher. We saw these kinds of weekly volumes only into 2010 and 2009. These are happening after this spilt. So at a lower price after the split people are again jumping into and buying the stock." "It was the late breakout when the Nifty was around 8,400, so I think again the buying interest is coming back. The short covering pattern, the pickup in the delivery and the resilient shown by the stock so far are the good points looking at which one can start buying in it. Yesterday it has again closed positive, so the move possibly towards Rs 1,250-1,270 is very much there on the cards. So, possibly in this series or the next series this target should be achieved," he said.