VK Sharma, Head - PCG and Capital Market Strategy at HDFC Securities recommends buying ICICI Prudential, ICICI Bank, Kotak Mahindra Bank, Torrent Power and UPL.
VK Sharma, Head - PCG and Capital Market Strategy at HDFC Securities told CNBC-TV18, "The strongest of the financials is ICICI Prudential where I think the FIIs will continue to buy because the long term average penetration in Life is just 2.7 percent for India and this is a sector which will go a long way. We will see continued FII buying here. I am buying the 430 Call at around Rs 8, stop loss at Rs 5, and a target of around Rs 14."
"ICICI Bank which moved up just 2 percent yesterday, but mind you, there is a 75 percent open interest (OI) being built up in the current series. So I am buying the 355 Call at around Rs 5, stop loss at Rs 2, and a target of around Rs 10."
"Kotak Mahindra Bank happens to be my third financial. The OI which is built in the current series is humongous; 94 percent OI has been added and the stock is up 5 percent. Although the stock was up 5 percent and some pruning of open interest yesterday, but I am still bullish on the stock. I will buy 1,060 Call at around Rs 12, stop loss at Rs 8, and a target of around Rs 20."
"Torrent Power is another stock in which we have seen pruning of profits yesterday. 12 percent OI was reduced, but the stock went up by 3 percent. I am buying the 305 Call here at around Rs 5, stop loss at Rs 2, and I expect the premium to double to around Rs 10."