Hemant Thukral, National Head-Derivative Desk at Aditya Birla Money told CNBC-TV18, "The way the shorts were placed in Tata Motors
, we were expecting some cut. I was expecting Rs 450 but it is showing beyond that. If it opens around Rs 440-450 and you have gone short yesterday, one should book profits because there is a lot of Put writers which are standing at Rs 430-440. So, I would assume that there will be some support coming for Tata Motors around those levels. However, for time being, I think Tata Motors will find it very tough to cross Rs 500 because what we saw yesterday was big selling in Call writing in 500 and 490 strike prices even in the March series. So, I don’t think even in March also you will see Tata Motors rebounding too much. So, it will be a sell on rise now, but I think at Rs 440-445 you should find some support."
"We have recommended two stocks and one on them is in oil & gas space - GAIL India
. This stock has been showing tremendous strength and at even higher levels yesterday, 6 percent open interest has added up. More importantly, for me the way we saw 490 Put adding open interest, it is looking that stock has more potential to go up. I think now this stock can test Rs 515. You should keep a stop loss of Rs 485-480. GAIL is showing a lot of strength," he said.
"The second stock is an ADAG stock - Reliance Capital
. Yesterday, we saw a lot of buying coming in ADAG stocks, but Reliance Capital in particular saw a lot of fresh longs being built up. With 3 percent long being built up, the stock is now showing technically also lot of strength and we expect it to test Rs 500-510 and now we can keep a stop loss of Rs 475. There is a lot of Put writing also which has started to emerge around that Rs 460-470 levels. So, we are recommending GAIL and Reliance Capital on the long side for two to three trading sessions and we expect them to give good returns."