Buy Balkrishna Industries, Equitas Holdings: Hemant Thukral

Hemant Thukral, National Head-Derivative Desk at Aditya Birla Money told CNBC-TV18, "The way Reliance Industries' Put writers are building up, we track Put writing very closely. If you see what is happening in Reliance, the 1,400 Put writers getting active, so the base formation has happened. I think the stock should be heading towards Rs 1,500 zone, so Reliance looks very capable to take it forward."

"We have chosen Balkrishna Industries and Equitas Holdings on the built-up of open interest and how they have pierced technical level. Balkrishna Industries looks interesting. It corrected from Rs 1,700 levels to Rs 1,620 and then it started consolidating. Now it has broken back above Rs 1,700 and yesterday not only cash volumes, the open interest moved up by 6 percent, fresh longs added up and now we feel that stock is ready to move up to Rs 1,800 but whoever is going long on this recommendation, should keep a stop loss of Rs 1,665 where it has formed the base," he said.

"Yesterday all the non-banking financial companies (NBFCs) specially the microfinance companies saw a lot of long build-up whether it was Ujjivan Financial Services or Bharat Financial Inclusion. The reason to choose Equitas Holdings are - 1) The way 150 Call got active and 160 Call also saw lot of buying happening 2) The open interest addition of 10 percent and because Ujjivan got into Futures and Options (F&O) ban, so the stock looks good to add on the long positions. Here we are keeping a stop loss of Rs 155 which will now act as a support base and we expect a target of Rs 165," he added.

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