VK Sharma of HDFC Securities advised buying Cipla 380 call at around Rs 8 with a stop loss at Rs 5.
Sharma told CNBC-TV18, “We like Cipla for next week. This is a stock that went down to a level of Rs 375, then buying emerged which added around four percent to the open interest. This buying was on the long side. The price didn’t move up more than 0.1 percent but the fact is that it came to neutral territory, which was good enough on a day in which most of the stocks were down. So I am suggesting buying the 380 call here at around Rs 8. Keep a stop loss at Rs 5 and hope to sell this at a price of Rs 15, which is almost earning double of your premium.”