Buy Axis Bank, Union Bank of India: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "From the banking space, we are picking Axis Bank 520 Call option for this particular series because the best part of Axis Bank has been that in this series 500 Put, when it was falling towards Rs 500, that Put became the highest and that is where for this entire series it has formed a good base. Now, it has closed above the series higher, around Rs 518 levels. So, my sense is it is going to breach Rs 520 eventually and can move towards Rs 530-535 levels. So, 520 Call which was the highest one, the Call writers were very active in this, eventually I think the closer should start here. So buying this Call option can be beneficial."

"If you look at PSU banking space, we feel that the move which can start now can continue for a while, possibly for another couple of series and that is why these are good lucrative levels to buy these stocks. They have already corrected by almost 30 percent or more than that - like Union Bank of India or Punjab National Bank (PNB). They had a correction of more than 30 percent."

"So, we are picking Union Bank because since the start of 2017, whenever the stock has seen such kind of profit booking, it has found support near Rs 140-145 levels. Now it has been trading near Rs 155, recently a good delivery pickup was seen near Rs 148 and my sense is around 20 percent of cut in open interest (OI) has already been seen. So, that is a short closer what is happening in the PSU banking now after this correction. So, we believe from here, Union Bank can move towards Rs 170. So, from the PSU banking this is one of our picks," he added.