Amit Gupta of ICICIdirect told CNBC-TV18, "Crompton Greaves has not gone to the previous highs yet. It had corrected by almost 23-24 percent from Rs 225 levels to Rs 175-180 levels. The open interest during this fall had got almost doubled. There is enough headroom for the short covering to take surface in this particular stock and it is possible that it should move towards Rs 220-225 kinds of level, so remain positive in this."
"Pharma has been a very safe bet so far because we have seen from the life highs that technology stocks had corrected but pharma stocks had gone just into the time correction and now they are making the life highs again. We have observed Sun Pharma and now Lupin also has started moving, so Glenmark Pharma which had consolidated for a much higher period now has started moving up," he said.
"One very good accumulation pattern in Glenmark Pharma is whenever it is shows two to three high month volumes, it generally holds those levels. Now these volumes were seen around Rs 700-720 levels."
He further said, "That should be the bottom case scenario in the near term for the stock, it has already moved up to Rs 800 and now this is just a retracement. It is coming down to Rs 750-760 kind of level. Buy the stock and look for a target of Rs 870 and if you observe the long positions in Glenmark Pharma, they have doubled in the last couple of series and the stock on net to net basis has moved up only by Rs 40-50. There is enough headroom for this particular long play to continue in this stock."
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