HUL may slip, RIL can touch Rs 854: Mehta

Mehta told CNBC-TV18, “Since Hindustan Unilever is in a consolidation phase people usually tend to bet on defensives and majority of the retail think that this is a highest level of the market and let’s shift to defensive counters. So, I think there is not much downside left in the defensive counter such as HUL. So, HUL is a very good pick at current levels. We are getting a premium of Rs 8 for 520 call. So, I think selling a 520 call and going long in futures is a very good bet for the September expiry. The maximum profit the person can earn if HUL stays above Rs 520 which actually is Rs 4 the downside risk starts from Rs 516 on the lower side I would recommend people to exit HUL if HUL closes below Rs 516 level."

He further added, "Apart from that Reliance Industries I have seen a good writing happening at 820 call for the October series today and with good volumes happening at around 840 call also in the September series. So, I think there is room for Reliance in a day or two to go upward to levels of Rs 854 on the upside. So, I am just suggesting people to buy 840 call at around Rs 5-7 right now, they can get a target of around Rs 16-20 on the higher side."