Buy NMDC, Balrampur Chini, Tata Power, Karnataka Bank, PC Jeweller: VK Sharma

VK Sharma, Head - PCG and Capital Market Strategy at HDFC Securities told CNBC-TV18, "NMDC has done pretty well and this is the stock which has added 7 percent open interest (OI) in the current series which is just two days old. Yesterday also 3 percent OI was added and the stock price is up 2 percent. I am buying the 145 Call at Rs 3.3 with a very tight stop loss at Rs 2 and hope to sell it at around Rs 6 which is almost 85 percent profit in the current series."

"Balrampur Chini is a stock which had gone down essentially because the industry expected that the profits for the next year would be down, but I think the stock has already corrected 26 percent from the top and we have seen 12 percent OI being added in the current series. I am buying the 140 Call at Rs 4.2, with stop loss at Rs 3 and target of around Rs 7," he said.

"Tata Power needs to be looked at seriously because this is a three and half year high. In terms of derivatives, I think 16 percent OI has been added, yesterday 9 percent was added, and the stock is up 5 percent in the series which is just two days old. So, I am buying the 100 Call at Rs 3.5, with a stop loss at Rs 2.5 and target of around Rs 6 which is almost 80 percent increase from the current level," he said.

"Karnataka Bank is among the smaller banks which we like based on the technicals and derivatives, all put together. I am buying the 160 Call at around Rs 4.15, stop loss at Rs 3 and target of around Rs 7."