Buy Axis Bank, Infosys: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "Since this is the start of the series, I think the trader should start looking at buying stock specific Call or Put options. Axis Bank since the month of February has consolidated near Rs 500-520 levels, but from February to May, there was a very high short build up. Around 62 percent of addition was seen on the short side. However, the positive was that the stock was not giving up despite the various news flows and that is why from the last series we saw that those shorts have started getting closed and almost 15 percent of short closure was seen in this. Near expiry, from Rs 490 when it moved above Rs 500 in the yesterday’s session, we saw that 500 Put base for July series has become the highest and there was a good closure of Call positions at 500 strike. So, it is possible this stock can form a base near Rs 500 and can start moving toward the Call base of 520 or then possibly higher."

"We are buying the 520 Call base for the time being, Call strike for Axis Bank which is available somewhere near Rs 10-11 and keep a stop loss of around Rs 5. I think eventually looking at this base formation of the stock, there may be a scenario when it will start moving up. That will benefit your call positions," he said.

"Another one we are buying is the Put option in Infosys because since the month of November 2016 it has come down to Rs 920 levels number of times but whenever it came down, there was always a bad news flow, either it is founder’s news of stake sale or it is the news of bad results. So, whenever it came down to Rs 920 there were certain news flows, then it reverted up. However, towards the end of June series, we saw that there was no news as such and then finally it is coming down to Rs 920. The Call writers have become very aggressive in this particular stock. From 1,000 Call strike where the open interest is very high, those positions have come down to 960 in the month of July. So, it is possible it can remain under pressure and eventually it can breach this Rs 920 levels, also where still the Put base is highest but we are taking the punt of buying 920 Put option which is somewhere around Rs 20-22 of premium and we feel that it can move towards Rs 44 in this particular series," he added.