Infosys may test Rs 1240, buy Tata Chemicals: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "Among the heavyweights, in Infosys another round of short covering is likely to pan out because in the last quarterly results when it moved up from Rs 1,100 to Rs 1,155, it was almost hovering around those levels.""My sense is that it has spent good time around these levels and if you look at the open interest (OI), around 20 percent of OI has been reduced. So it is more a short covering pattern, which is panning out and it should continue in the result announcement in mid April," he said."If you look at it option wise, 1,200 Call options had been bought. So either you buy 1,200 Call or you go long in the futures at the current level. I think Rs 1,240 should be the target for this stock.""Among the midcaps, there may be one-two opportunities, like Tata Chemicals that has been an oversold stock and it is a good time to buy quality oversold stocks. The OI in this stock has started declining. It is very substantial because it was one way fall in the stock. So at the level if Rs 335 is where the delivery buying picked up, that remains the support and it should move towards Rs 380 in the coming sessions because of the short covering."