Buy Cipla, Sun Pharm, M&M Financial Services, Tata Chemicals, Vedanta: VK Sharma

VK Sharma, Head - PCG and Capital Market Strategy at HDFC Securities told CNBC-TV18, "I am buying Cipla, 610 Call at Rs 10, stop loss at Rs 7, and target of Rs 15. This is stock which has seen almost 13 percent open interest being added and is up 4 percent in the current series."

"In Sun Pharmaceutical Industries, although no open interest added, the stock went up by 2 percent yesterday. This is also a stock which has seen 5 percent open addition and 10 percent price surge. It is coming off the lows that it had seen. I am buying the 560 Call at Rs 8. Keep stop loss at Rs 5 and target of Rs 14."

"Mahindra & Mahindra Financial Services is a stock which has seen a very high amount of open interest, 67 percent to be precise in the current series. The stock is up 8 percent in the series. Yesterday it was up 3 percent. So I am buying the 440 Call here at around Rs 10, stop loss at Rs 7, target of Rs 16. The news of the insurance broker selling some of his stake to Excel Insurance Company should also help. So this is a stock that should do well," he said.

"Tata Communications, if you recall, some two and a half years back when Tatas were selling and we had recommended that stock at around Rs 118 obviously and then subsequently we came out with a fundamental report. We believe that this is a stock which has again moved up yesterday by 4 percent although no addition in the open interest. But technically, the stock has moved up. So I am considering a bull spread here. I am buying the 720 Call and selling the 760 Call."

"So my cost would come to around Rs 10 and the maximum profit that I can have is around Rs 30. I construct this bull spread and hope that the stock moved up which I think should definitely be in the current series," he added.

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VK Sharma

Head - PCG and Capital Market Strategy|HDFC Securities

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"Tata Chemicals is of course a pick that we have liked. It is has moved up Rs 100, from those levels and I believe that this is a stock which will continue to see not only earnings growth but also an expansion in its P/E ratios what the market gives because it is going to change its colours from an industrial company to a consumer company three years down the line."

"So for the short-term, I am buying the 700 Call at around Rs 14, stop loss at Rs 9 and a target of around Rs 25."

"Vedanta is a stock which has added 25 percent open interest in the current series and up almost 8 percent. I am buying the 340 Call at around Rs 4.50, stop loss at Rs 3 and a target of around Rs 8," he said.