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Mar 16, 2017 04:44 PM IST | Source: CNBC-TV18

Buy Apollo Tyres 190 Call, Motherson Sumi 360 Call: Amit Gupta

Amit Gupta of ICICIdirect is of the view that one can buy Apollo Tyres 190 Call and Motherson Sumi Systems 360 Call.

Amit Gupta of ICICIdirect told CNBC-TV18, "We are picking up the auto ancillary space where Apollo Tyres and Motherson Sumi can be looked at for this particular expiry and we are buying the Call options of both of these stocks."

"Apollo Tyres, just because the rubber prices have come down by almost 15-20 percent in the international exchanges, and the short positions had risen to almost 83 percent in Apollo Tyres and Ceat also, the same phenomena was there, but particularly in Apollo, though it was not taking out Rs 200 on the higher side, it was finding a lot of support near Rs 180 levels for the last two or three series and now this move has started. I think if somebody can buy 190 Call with Rs 3-4 of premium, it can move towards Rs 9 also," he said.

"Same goes with Motherson Sumi which has consolidated for a long time near Rs 330 levels and since this move started above Rs 330, almost 24 percent of short closure has been seen in the stock. It closed near Rs 360 levels. My sense is, it is going towards life highs of Rs 400. So, we can start buying 360 Call option in Motherson Sumi"

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