Buy Mahindra and Mahindra: Amit Gupta

Amit Gupta, head-derivatives at ICICIdirect told CNBC-TV18, "Since the month of September the open interest in Maruti Suzuki India has got doubled, they are having lot of positive news coming out and then we saw the yen movement. Yen moved up from 97 to 104-105/USD so that also bodes well with the stock movement and because of this people went long in the stock and the open interest became very heavy."

"This is a very highly leveraged stock. I am seeing signs of long liquidation in the stock right now. So there is a possibility it may come down little bit further and yen also is likely to appreciate further in the near term where 101/USD will be the level up to which yen may come. So that may be little bit negative for Maruti in the near term, it may remain sideways or possibly come down also," he said.

"Mahindra and Mahindra (M&M) is just the reversal of Maruti. The open interest has got halved which got doubled in Maruti. So the leverage is quite low in M&M and when it came down in the last 100 points fall from Rs 970 to Rs 870, we didn’t see any kind of short addition, it was just a long liquidation which was happening and now the positions are very low, so I think it bodes well. It gives a signal that Rs 870-880 is a very good support area for M&M and we should start buying the stock. So I am going with this pair strategy on this hypothesis that M&M possibly is going to outperform Maruti in the near term."