VK Sharma, Head of Business, Private Client Group at HDFC Securities is of the view that one may buy Tata Communications 680 Call, sell 720 Call while one can buy Torrent Power 185 Call.
VK Sharma, Head of Business, Private Client Group at HDFC Securities told CNBC-TV18 "Tata Communications is closing just Rs 8 short of the all-time high, not the all-time high, last six years whatever we have seen. I am buying the 680 Call at around Rs 18 in this and am selling the 720 Call at Rs 7. So, essentially I have Bull Spread here in which the cost will come to Rs 11 and the maximum profit will be around Rs 29."
"Torrent Power on the other hand is riding back on the power stocks that did well yesterday. So, good amount of open interest was added in the series. I am buying the 185 Call at around Rs 6, keeping a stop loss at Rs 4 and gunning for a target of around Rs 10," he said.
"Cipla continues to be one stock which is doing well apart from the fact that the other biggies have suffered, this hasn't. Open interest (OI) has been added for the series yesterday also and the stock is up both for the series and as of yesterday. I am buying the 590 Call at around Rs 10.5, keeping a stop at Rs 7 with a target of around Rs 16."
"Larsen and Toubro (L&T) is a better stock although it has run up subsequently for the past three sessions but I am still buying the 460 Call at around Rs 21, keeping a stop loss at Rs 14 and a target of around Rs 40."