Buy Mahindra and Mahindra, short Nifty: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "Buy Mahindra and Mahindra (M&M) and short Nifty. M&M has already seen some kind of short covering trend. It was hitting Rs 1220 kind of level number of times, in fact from the month of October it was doing like that. However, when the Nifty fell almost 7 percent during this period in the month of December we saw again it was hitting Rs 1220 only and was not breaching that level. So, that has led to the short covering in the last two sessions."

"I think it has been a good stock; the only fact was it was underperforming; the sales figures were not coming good. However, somehow the price is absorbing that kind of low sales figures and that is why it has already formed the bottom around Rs 1220 now. So, it is on the way up and it is possible it can move towards Rs 1400 or beyond kind of level also; it has that kind of potential because the other peers have performed," he said.

"If you look at Tata Motors or Maruti Suzuki India, they have performed. However, there is a lot of potential in it which can up come up over the period. So, if Nifty is moving up because we expect Nifty to move towards 8800 kind of level, it will give you better return because a lot of shorts are there and the short covering will give it higher return than Nifty in the coming days."