Expect 15-20% upside in M&M Financial: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "People are stuck up in the high beta midcap names and that is why the volumes slowly are coming down, they are more stable to positive, the other laggards in the markets from across the sectors whether it is fast moving consumer goods (FMCG) or the finance or other sectors, they have started performing. So I think this is a market where the traders have not entered and the short covering is taking place. So you can pick up those stocks immediately because I think once they start moving by 10-15 percent then the run up may be lost."

"From December 2013, Mahindra & Mahindra Financial Services continuously has been coming down from Rs 320 to Rs 230. So that is 100 points of range but generally on the lower side, we have seen the stock being reeling around. After the results, we have seen good delivery pick up and around 20-30 percent of open interest has been closed, this is basically the short open interest which is close now. In the previous falls, 235 percent of open interest was added. So we have seen almost more than triple kind of open interest in the short side. So you can assume that still there is a lot of room for the short covering. So I think 15-20 percent of upmove is also possible in this stock from the current levels," he said.

"Tea stocks were not performing at all. Even Tata Global Beverage was down and McLeod Russel (India) was also down. McLeod Russel started moving up but this time the volumes were very high. If you see the delivery base buying that was also followed by the volumes and we have seen that the open interest of around 15 percent has been closed. So again this is another case where the stock remained laggard and the short traders were quite heavy."

"So I think there is room in McLeod Russel to move beyond Rs 300 and possibly to move towards Rs 320 levels also. So I remain positive in these two stocks because people are not very heavy in this so far. So I think the upsides of another 10-20 percent can be seen in the coming month or series."