Discussing his F&O strategies on various stocks, VK Sharma, head of business, private broking & wealth management, HDFC Securities said his first call was Tata Steel.
"One should construct a bull spread here, in which the trader could buy the 320 Call, which is available at around Rs 8 and sell the 340 Call at around Rs 3. The cost of construction on this bull spread would come around Rs 5 and the maximum possible gains that a trader could have is around Rs 15," he said in an interview to CNBC-TV18.
Meanwhile, he pointed out that banking stocks are under pressure now. "Punjab National Bank (PNB) fell on heavy volumes. It fell by almost 3.2 percent, and positions were added on the short side - almost 6 percent positions. So, this stock closed at around Rs 744," he elaborated.
He suggested buying the 740 Put, which was available at around Rs 24. One can buy this Put with a target of around Rs 40.