Amit Gupta of ICICIdirect told CNBC-TV18, "I think the PSU banking space is likely to perform not only in this particular series but in the coming one or two series because Nifty possibly may consolidate now near 10,000 levels and in that case I think stocks like Union Bank of India which has already corrected by 30 percent, that can start performing now. In this particular series also because the shorts are very high in this particular stock after Punjab National Bank (PNB), because PNB was also one of the highest open interest additions that has seen in the short side, this is another stock. So it has started closing above Rs 160. Now, Rs 160 is very crucial because that was the highest call base where the Call writers were very active. So, once you are above this, there is a likely chance that you can see more short covering in this particular strike and the stock can move towards Rs 170. So, we are recommending 160 Call option of Union Bank to buy for couple of days, today and tomorrow. It is possible if it starts moving up, you will make money in this particular strike."
"Because Nifty can consolidate, there are certain Nifty constituents which are still consolidating near life highs, like Power Grid, Adani Ports and Bosch. Particularly, if you look at the open interest (OI) pattern in all of these, it is in a declining trend. So, we are seeing that eventually the shorts are exiting and there is a good setup which is forming in these stocks."
"Power Grid we believe can move towards Rs 228 possibly in the coming series and the support now for the stock remains near Rs 210-211 levels because it has formed a good volume setup and whenever such setup is formed, it generally finds support there and that is formed near Rs 210," he said.
"Adani Ports is still consolidating near the 2015 levels of Rs 370-375; that was the high it made in 2015. Now, after couple of years obviously it is taking out that level. However, it has been a very slow mover near these levels. However, if you look at the open interest, almost 30 percent of cut in OI has been seen in the last couple of series. So, there is a large belief that it can move towards Rs 410 or Rs 415 levels."
"The auto ancillary space has not performed that much yet, in the last 500 points of move in the Nifty and in that I think Bosch
which has remained near Rs 24,000-23,500, now I think it is a good platform for the stock to start moving up. I think it should give a breakout eventually and can move towards Rs 25,200 and that is why we are recommending this to our clients."