Buy Indraprastha Gas, should have good upmove: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "Indraprastha Gas (IGL) has seen a very major long addition. If you look at the historical volatility of the last two or three months, it has come down very significantly. So, this kind of pattern actually works very well for the stock upsides. That means an accumulation is happening in the stock. What happened before Rs 608, in the month of January, it hit and then it has spent almost four months near Rs 560-570 range.""The delivery pick up near Rs 570 was very huge that we have not seen in the last one year. So, I think strong hands possibly have entered into the stock near Rs 570 levels and now it has moved above Rs 608 again. So, it has made the life high. My sense is the stock is in the uptrend and any little bit profit booking because, it moved very sharply yesterday, so that kind of profit booking can be used as a buying opportunity," he said."Look for a target of Rs 645 or beyond in IGL. If you observe in F&O in future segment, we have seen around 60 percent of the addition in the current series. So, both in cash and futures, I think the longs are formed and it is possible that the stock should have a good upmove from here on.""It is possible that if some kind of profit booking again comes in the latter half of the day, one can buy Larsen & Toubro (L&T) and short Nifty. That is what we have recommended to our clients also. If you look at the pattern of L&T in the last two or three series it has seen the continuous decline in the open interest.""It has been in the major short covering trend. The prices on the day of result the way 14 percent of the move we had seen in L&T we have not seen in the previous quarter such kind of move after the results. After that we had seen that it went sideways. So, Rs 1,420-1,440 I think is a good support area for the stock.""So, when it is falling we are not seeing any major long liquidation happening but yes the previous shorts are still there which may be the major driving force for the stock in terms of short covering happening. So, from these support area of Rs 1,420-1,440 again it should move towards Rs 1,600 levels. So, buy L&T and short Nifty because even if the market is moving I think it will give you a better alpha on the market."