Buy Vedanta 290 Call, advises Amit Gupta

Amit Gupta, Head-Derivatives at ICICIdirect told CNBC-TV18, "We are recommending Vedanta, 290 Call option to our clients to buy for this particular series. Last week also I post this particular strike because of the open interest addition in the last two or three weeks and we need to find out any particular stock in matter where still a lot of shorts are there. Vedanta is definitely one of the picks because in the last one month movement when the other metal stocks were quite firm, it was very close to Rs 200 but very much sticky there and we saw Tata Steel moving beyond the crucial level of Rs 520 and then continuously moving up but Vedanta had an intermediate correction from Rs 280 to almost Rs 240 levels and that is where the major chunk of short positions came and now in this particular series we are expecting that particular short closer to pan out."

"We have seen almost 10-15 percent of closer when it surpassed Rs 280 level and these were the highest Call basis. 280 Call was the highest Call and now we have seen closer in that particular strike. So Rs 290-300 is still holding firm in terms of Call basis and our Call is that these open interest position should eventually be closed because they are more writing bias. So we are recommending 290 Call option to buy," he said.