In an interview to CNBC-TV18, VK Sharma of HDFC Securities shared his reading and outlook on Futures and Options markets. Wipro and UCO Bank are his two strategies for the coming week.
Wipro has added almost 7 percent positions during the last week. It closed at more than 2.7 percent high. This stock is behaving slightly better than the other heavy weight technology stocks.
"I suggest buying 420 Call in Wipro, at Rs 5, with a stop loss of Rs 3 and hope to sell this at around Rs 12. One would make about 2.5 times of the premium in case of Wipro," he added.
The positions and structure in UCO Bank is such that it can still continue to do better in next week. It is one of the smaller banks, which are quite in demand.
"I suggest buying the 85 Call in UCO Bank. This Call which is available at around Rs 3 can be bought and one can have a stop loss of around Rs 1.5 and hope to sell this during next week at around Rs 7. Here as well the cost to benefit ratio is more than Rs 2," he recommended.