Gaurav Bissa, Derivatives Analyst at LKP Securities told CNBC-TV18, "My first recommendation will be buy on Divis Laboratories. In the last three days it has added somewhere around 7-8 percent open interest (OI) in the future segment. Also the price action has not been there. It has been consolidating in the range."
"On multiple occasions we have seen the stock reversing from Rs 885, and today was the same case. So, any bounce back above Rs 885 can be bought. Keep a stop loss of Rs 873-874 and the targets can be around Rs 910. If it sustains Rs 910, I would not be surprised if it touches levels Rs 949-945 with relative ease."
"Second would be buy on Karnataka Bank. There are two reasons for this – one 160 Call option had a lot of selling. We have now started trading above these levels. For the last two to three months we have seen 160 Call option adding lot of open interest. This is the first time in last three to four months where you have seen good amount of open interest addition in 160 Strike Put option."
"Rarely do you see a midcaps which adds such a high concentration open interest addition at the at-the-money strategy at the same strike where it is trading around, so that is a positive sign."
"If it sustains Rs 160, the next biggest open interest concentration is at around Rs 170 levels. So, I recommend to have a stop loss of Rs 158 and play for targets Rs 167 to Rs 170," he said.
"Final recommendation is the sole sell recommendation is on Zee Entertainment Futures. The stock has moved from Rs 500 to Rs 550 but we did not see too much of action happening in the open interest space. There was hardly any addition of 1 or 2 percent. Now we are seeing some sort of intraday shorts getting build around Rs 545-550. So, using that as a stop loss one can play for targets of Rs 535," he added.
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