Buy Godrej Industries, Tata Communications: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "Godrej Industries and Tata Communications are buys. In this market I think the top contenders generally have witnessed the profit booking but Tata Communications is one such stock which is still above the Budget day's high. Budget days high for Nifty was little high around 8950 or 9000 levels but it has been trading above Rs 420. So, if market is trading in a range then there is a large possibility of Tata Communication moving up higher."

"It is different from Idea Cellular or Bharti Airtel because when they were witnessing profit booking, Tata Communications was not falling and now because the whole sector is buzzing little bit there is a possibility of the stock moving up. So, if you look at the open interest position, it has generally been the long addition in the stock, around 20-25 percent of long additions in this series has already been seen which are likely to be rolled over to the next series. So, it is a positional long stock which one should look at. It has already formed a base around Rs 380-400 which was the peak of the previous move and last time it made a high around Rs 475. So, possibly in a period of one or two months it is likely to move towards Rs 475-480. So, one should remain positive in it," he said.

"From the FMCG space Godrej Industries has weightage in Godrej Properties and Godrej Consumer Products, it is a holding company of both of them and in the last few months we have seen both the stocks have performed little bit better. Godrej Industries which remained laggard around Rs 280-300 for almost October to February. The bottom is formed around Rs 300 for Godrej Industries and it is on the path of moving up."

"If you look at the delivery pickup, around Rs 300-320, good delivery positions are seen. The best move came in February when it moved up from Rs 290 to Rs 315 in one or two sessions and very high volumes were in seen in that particular move; almost three months high volumes. If you look at the open interest from February there has been a continuous closure of positions in open interest in Godrej Industries and that justifies the fact that shorts are getting closed now. It may be a good stock for this expiry also to play positive," he added.