Feb 16, 2017 10:20 AM IST | Source: CNBC-TV18

Buy Hexaware Technologies 210 Call, says VK Sharma

VK Sharma of HDFC Securities recommends buying Hexaware Technologies 210 Call.

VK Sharma of HDFC Securities told CNBC-TV18, "The calls on Tata Consultancy Services (TCS) and Hexaware Technologies came yesterday and therefore the markets will now prove that perhaps the direction will be higher. You don’t change the strategy. Instead of buying 2,450 Call maybe you will buy the higher Call at around Rs 2,460 to Rs 2,470 at whatever level this stock opens. Keep a stop loss of around 30 percent in that Call, whatever premium and opt for almost 50 percent rise in the call premium appreciation in TCS."

"I think one can buy the 210 Call at Rs 3.80 in Hexaware Technologies with stop loss at Rs 2.50 and target at around Rs 7. This is a stock which has seen huge open interest being built up in the series of 34 percent. The stock was up almost 6 percent yesterday in the whole of the series. So, that is relatively a stronger bet among the smaller stocks," he said.

"Indraprastha Gas (IGL) is another stock which has continued to do well although positions were pruned yesterday to the extent of 8 percent, but I think for a stock that has built up 45 percent open interest (OI) and gone up 12 percent, IGL has further room to close as far as this settlement is concerned. I am buying the 1,060 Call here at around Rs 13 keeping a tight stop loss at Rs 8 and hoping that it will sell at around Rs 21 by the time this series closes."
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