Buy YES Bank, Mahindra & Mahindra Financial Services: Hemant Thukral

Hemant Thukral, National Head-Derivative Desk at Aditya Birla Money told CNBC-TV18, "We have chosen two stocks, more or less from the same industry. A lot of individual stocks are doing well in banking but we have picked up YES Bank for two reasons. One, the open interest addition which is the basic of derivatives data, 16 percent open interest added up, the stock has closed at a new 52-week high. It is showing strength, so we have revised the stop loss to Rs 1,575, whoever takes a trade today, the target looks good to go to Rs 1,640-1,650."

"The second stock is from NBFC - Mahindra & Mahindra Financial Services. This stock has been outperforming from last 10-15 trading sessions and the way the open interest added up yesterday of 6 percent, we see this rally in the stock to continue. We expect Rs 325-330 support zone to act as a stop loss and expecting a target of Rs 350 to Rs 355. Both the calls are valid for next two-three trading sessions," he said. 

"IT has been seeing a lot of shorts added up-- interestingly Infosys is coming out with numbers and 900 Put is the key now because that is the highest open interest. Before result, we do not expect it to breach below Rs 900 but we are recommending buying 900 Put and 1,000 Call. We expect sharp movement in Infosys and because there are lot of shorts already in the system, small positive also, you may see a short covering rally getting triggered but if there is a disappointment and if it goes below Rs 900, the Put writers unwinding will force the stock to retest Rs 840. That is why we are suggesting that prior to numbers start accumulating 900 Put and 1,000 Call both on Infosys."