Buy Tata Global Beverage, Tata Steel, Castrol India: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "For this particular expiry, we are buying the Call options of Tata Global Beverage and Tata Steel. In Tata Global, if you see the delivery buying which has happened after the recent correction from Rs 160 plus levels to Rs 156, in the last to last session we saw very good delivery pickup in the stock. Since the second half of November, there was a very stiff resistance near Rs 155 levels for Tata Global and now we had already seen that the last month there was a correction from Rs 160 to Rs 140, almost 13-14 percent of correction we have seen in Tata Global and then this recovery has started with good delivery pickup. Almost 30 million shares have been rolled so far which was majorly in the short side. So, my sense is if Nifty remains above 9,600 or 9,620 levels because after this reversal from 9,570 above 9,600 there has been good short closer in 9,600 Call option. So, there is a possibility for this expiry despite this MSCI news that Nifty can remain above 9,600 and in that such kind of stocks where the shorts are very high like Tata Global, they can see more short coverings."

"So, we are buying 160 Call option which is available near Rs 1.8-1.9 and it is possible it can see more surge from here."

"The other one is Tata Steel because the metal pack has been little bit buzzing. Whatever profit booking is coming in the metal pack, it is immediately getting erased, particularly Tata Steel. More than 10 percent of correction had been seen in the month of April and then the move above Rs 500 has come on the back of the life high volumes, almost life high volumes near Rs 500 levels. Now if you see the 500 Call writers which were also very active with the future traders, now those positions are getting closed. From Rs 500 these positions have been rolled to Rs 550 levels. So my sense is eventually Rs 550 maybe hit in Tata Steel. So, with this consolidation in the market I think these two stocks can be looked at possibly for this expiry perspective," he said.

"I think Castrol India can be looked at because since January 2017 whenever it has come down to Rs 400 levels, we have seen good jump in the stock prices and now because crude is also coming down, this is one of the beneficiaries of crude. So, from that perspective also if you look at the last two or three session volumes, that has been quite encouraging. When I look at 420 Call option, the premiums are not coming down despite the stock coming down from Rs 416 to Rs 411. I did not see that premium coming down, so, possibly some accumulation is there and it is possible the stock can move towards Rs 430 levels in the coming sessions. So, this is one stock which we are recommending at the lower band," he added.