Buy LIC Housing Finance 750 Put, REC 180 Put; short BoB: Krish Subramanyam

Krish Subramanyam of Altamount Capital told CNBC-TV18, "I have chosen one housing finance company. Housing finance companies have had an incredible run but today there seems to be some sort of pressure. Even on the charts, likes of LIC Housing Finance looks pretty overbought. So, some near term correction could be round the corner. One could possibly buy a 750 strike Put that is quoting at around Rs 6.50 for a modest target of Rs 12, keep a stop loss of Rs 3.50."

"Among couple of other stocks, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) are also looking pretty weak. Going into the expiry it probably could go down further. I have chosen REC to play on the downside. Possibly one could buy 180 strike Put at around Rs 4. I think we could easily see targets of Rs 160 coming about so Rs 4 should touch levels of Rs 8 and one could keep a stop loss of Rs 2. So, bearish overall and I think one has to probably be braced for some downside going into expiry," he said.

"Clearly the PSU pack, the likes of Bank of Baroda has been struggling the entire week and now it is almost close to levels of Rs 160. I think that is one stock which probably could head downwards to maybe close to levels of Rs 150-153. One could look to probably play on the downside. So, that is one stock I think I would be looking to go short on."