Buy Tata Communications, Dr Reddy's Labs, Mindtree, Cummins India: VK Sharma

VK Sharma, Head - PCG and Capital Market Strategy at HDFC Securities told CNBC-TV18, "I am buying Tata Communications 720 Call at around Rs 14. Yesterday, it closed around Rs 16, so, I am tempering my buying. I am buying slightly dips at Rs 14, stop loss at Rs 14 and a target of around Rs 25."

"In Dr Reddy's Laboratories, I am buying the 2,300 Call at around Rs 34. Yesterday, it closed at Rs 40. So obviously with the 50 points dip in the Nifty expected, I am tempering my buying. I am keeping a stop loss at Rs 20 and a target of around Rs 55."

"Another stock which I am buying at the open at whatever rate it is, at yesterday’s close is Mindtree. I am buying the 470 Call at Rs 7, stop loss at Rs 4, and target of around Rs 15. The logic here is that the buyback is over, the stock have come back and the selling has been absorbed. The company had guided that going forward they see better days ahead after the July results. So, I think this is a stock that can be bought where I expect the premium to be doubled in the current settlement," he said.

"Arvind is a consumption story and that is unlikely to be sold off by the FII selling. FIIs may sell other things but they like to keep it. So, I am buying the 410 Call at around Rs 8 although it closed at Rs 10.5. So, I am tempering my buying by buying it lower with stop loss of Rs 5 and target of Rs 14. The big trigger here long term is going to be the listing of the brand subsidiary which will happen sometime next year. However, currently the stock looks good."

"Cummins India is another stock where we have seen good open interest being built in the current series around Rs 37 percent. The stock is also up 3 percent so far in the series. I am buying the 960 Call at around Rs 17 tempering down from the Rs 20 it closed yesterday with stop loss at Rs 12 and a target of around Rs 25," he added.