Buy Century Textiles, Mahanagar Gas, NCC, Torrent Pharma, Tata Chemicals: VK Sharma

VK Sharma, Head - PCG and Capital Market Strategy at HDFC Securities told CNBC-TV18, "I think at this point of time it is better to stay with the smaller ones, those that are not a part of the Nifty per se and chances are that you will do pretty well and better than the market."

"So in Century Textiles, although I have combined the two days together, the Muhurat session and the day previous to that, we have seen only minor movements, 1 percent open interest (OI) up and the stock was up 1 percent. However, I am buying the 1,320 Call here at around Rs 21, stop loss at Rs 14, and target of around Rs 35. The reason is that overall in OI you have seen increase in this series of around 9 percent and the stock price is up almost 8 percent."

"Mahanagar Gas is another stock which is doing pretty well. The only OI that was added was in the last two days, Muhurat session and day before that on Tuesday. Almost 12 percent added to the OI and 3 percent to the stock price. So I am buying the 1,200 Call here at around Rs 19, stop loss at Rs 13, and a target of around Rs 30."

"NCC is another stock. I am buying the 95 Call here, just available at Re 1, stop loss of Re 0.50, and a target of around Rs 2.50. So your risk reward ratio is pretty good here and almost 13 percent stock price is up in the current series, 9 percent OI was added. The lot is around 8,000 shares, and Rs 2 face value stock. I think you can buy this on trading."

"Another stock is Torrent Pharma, here the volumes are not that high, so, I am buying the stock futures. This is one stock which has given a five month breakout on Tuesday. It went down slightly on the Muhurat day, but overall 137 percent OI has been added, but that comes on a very low OI of around Rs 30 crore. So the OI now is Rs 79 crore. I am buying the futures at around Rs 1,365, stop loss at Rs 1,350 and a target of around Rs 1,395," he added.

"Tata Chemicals is a company which is in a pupa stage and about to become a butterfly. In case of a butterfly, the time is known, but in case of this, the management has said it will take around three years when the market share of consumer business of Tata Chemicals which is currently 15 reaches around 50 percent in three years’ time."

"That is what I think will drive the stock higher. Internally, in the short term also, we have seen that in Tata Chemicals OI being added by 33 percent in the current series, a series which has otherwise not been so good, and 12 percent increase in the share price. I am buying the 720 Call here at around Rs 10, stop loss at Rs 7, and target of around Rs 16 which I think is 60 percent return on a premium."