F&O cues: VK Sharma positive on IDBI Bank, Ranbaxy
VK Sharma, fundamental analyst, HDFC Securities, recommends buying IDBI Bank and Ranbaxy Laboratories.
Here is the edited transcript of his discussion with CNBC-TV-18
On IDBI Bank
It has seen a decent buildup of open interest of around 8 percent. In terms of price also, the stock went up by 2-2.5 percent. At Rs 86.50 it is well placed and the next resistance comes at around Rs 90. So considering the fact that 85 Call was the level at around Rs 2.2, one can buy that with a stop loss of Rs 1. Even if the stock touches the price of Rs 90, the target price of Rs 5 in the 85 Call would be achieved.
The stock has made a recent 9-week high. It closed at around Rs 456. The price went up by something like 2.5 percent. Even if one were to buy the 460 Call at around Rs 5.5 and keep a stop loss at Rs 2 it would be possible to earn a premium of Rs 7 on this. So the Call that one is buying at Rs 5.5, it would be possible to sell it around Rs 12 in a day or two itself.