Buy UltraTech Cement, Arvind, Gujarat State Fertilizers: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "If you see the rollovers right now, there are three spaces which had not performed so far, but we are seeing a very significant cut in the short positions – cement, textiles, and to certain extent fertiliser space."

"If you look at the cement space, for UltraTech Cement, results were little better than what the market was expecting. The same happened to ACC; and that happened before the expiry week. So, wherever the shorts were there, because in both of these stocks we had seen a very high buildup of short positions before and that is why they were underperformers."

"However, there is almost 30 percent cut if you look at the rollovers from October to November and that is why I think in November series also they may be the performers. So, in UltraTech Cement, we are targeting almost Rs 4,450 levels on the higher side. I think it has already formed a base near Rs 3,900-4,000 levels for quite some time now. It was a dragger because when it acquired Jaiprakash Associates Cement, that acted as a drag, but once the results are out, I think it may push the stock higher,"  he said.

"Another segment is textile. If you look at the number of stocks in the textile space also, they were laggards. It could be because of the rupee move which was more on the appreciation side, but recently the Kewal Kiran Clothing results were out. This stock is not in F&O, but from the result perspective, it showed very good results from the branded apparels side. Arvind has a lot of presence in branded apparels."

"What we are observing now is that the rollovers are on the short side, again they are reduced by more than 20 percent. It means this stock is very much ready now for a good upside just on the back of short covering. 400 Call writers which were quite active in the last many series, because this stock has not moved up in the last three years now, that remains in the range of Rs 370-360. However, 400 Call writers are now shifting their positions higher. It closed above that level and that remains the highest Call base. So that demands for a good short covering move in Arvind in the coming days and that may carry on the November series also," he added.

"Since the start of 2017, GSFC remained quite range bound above Rs 120-125 levels. This is a new entrant in F&O; in the last few months before it came, and when it came, there has been a continuous addition of positions. In the last quarterly results also, it fell towards Rs 120 and then immediately pulled back. So I think the delivery buying is very much intact in this stock which can lead to further up move towards Rs 165. So these are three stocks from the rollover perspective that we are pitching on the long side to our clients," he said.