Amit Gupta of ICICI Securities told CNBC-TV18, "The broad range for Tata Consultancy Services (TCS) is Rs 2,200 to Rs 2480, so in the coming months it is likely to hover in this range. However, Wipro, there is much to scale up from the current levels. This has been the most subdued stock out of the top four in the technology pack in the previous one-year or so and we have seen lot of short built-up in this particular stock."
He further added, "After the last quarter results, Wipro came down till Rs 470-480. Right now it is around Rs 570 - 36 percent of open interest has been closed. So that is basically a closure of short positions and from Rs 550 it has moved up by close to 3-3.5 percent only, but the open interest closure we have seen around."
"So despite a slow upmove in the last one-month the open interest is still continuing to be getting closed. So, it is a good candidate for short covering in the coming session and this is what I believe. It does not have that much of high weightage on the Nifty, so index management fall may not be there. Buy Wipro and short Nifty and that is a pair strategy one can look at, possibly it can give money," Gupta said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
