Go long in Infosys, CESC may rise by Rs 20-30: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "Infosys is the only heavyweight stock which has shown a lot of resilience after the results and if you look at the open interest (OI) position, it has come down significantly. That means the short positions which have built up before the results, eventually are coming out from the system. So that is providing a lot of support to the stock and there was a long block which happened around Rs 1,080 levels which remains the positional support for the stock.""My sense is that if we short Nifty and go long in Infosys simultaneously then where the Nifty falls more or Infosys falls lesser and on the higher side if market reverts then I think Infosys will give higher returns than Nifty. Looking at the rupee also which is sticking around 68 per dollar, that has also given some positives to the IT stocks. So in that case, momentum in Infosys will come immediately once it crosses Rs 1,140 levels because that is where the call writers were active. So out of that immediately Rs 40-50 of upside can be seen in the stock. So this is one strategy, which we have been pitching to our clients," he said."If you look at the Call positions, 700 Call option in YES Bank and 400 Call option in Axis Bank have been written. So both these stocks are likely to expire below these levels. In fact, whenever such an activity happens in calls, on writing side, the stocks generally see 3-4 days of continuous fall and that is why if somebody can short Axis Bank even at these levels or little bit higher, if it is around Rs 388-389, you short, keep a stop loss around Rs 398. It should go down towards Rs 370-374.""I understand the fact that Axis Bank has not breached the January lows yet but it has been a laggard, the open interest in futures has been at the life high and with the majority of the short buyers. Still we are not seeing the short covering that should have happened in the stock. So that means, further lows are likely to be coming in this stock in the coming days.""Some buying possibly may come into the power stocks. When the government is going to disinvest in the PSU stocks, I think Power Grid and NTPC are there. So possibly into the private stocks, some kind of buying may come in and CESC is one of them," he added.He further said, "CESC is definitely close to good support levels of Rs 420-410 and we have seen that around 18 percent of short positions have been closed in the stock in this particular series. It has started moving up. Yesterday, market was almost 100 points down, so looking at that it has not given any significant pullbacks so far, it was almost flat. So possibly these are the initial signs of some kind of resilience in the stock and yesterday also there was a closure of 1.5 percent of positions, that was again a short closure.""My sense is that the stock is gearing up for some kind of upside from here and another Rs 20-30 of upside is very much possible in this. So Rs 460-470 kind of targets can be put in place."