Check out! Why VK Sharma has buy calls on Lupin, Sun Pharma, ICICI Bank, Concor

VK Sharma, Head - PCG and Capital Market Strategy at HDFC securities told CNBC-TV18, "I think Lupin and Sun Pharmaceutical Industries are the pharmaceutical stocks which have been beaten down but have shown some kind of a strength during the last few days. In Lupin, in the series although we have seen huge 38 percent position being built on the short side, the stock is down 15 percent. However, yesterday, the positions have started being pruned down on the shorts and the stock went up by 2 percent. I am suggesting to buy the 960 Call at Rs 13, keeping a stop loss at Rs 8 and with a target of around Rs 25 which is almost doubling of that premium."

"In case of Sun Pharma, I am buying the 480 Call at around Rs 5.8, stop loss at Rs 3 and a target of around Rs 14. The stock has been massively shorted but yesterday no further shorts happened and we saw the price going up. I think this could be the way in which we could see some kind of a bounce back in the pharmaceutical sector as a whole and these two companies could lead it," he said.

"Another stock is ICICI Bank which has not moved up on the news on which it should have. After Essar news came in, the stock has not moved much on the higher side. So, I think it is the markets tendency to start building up on those stocks after the news is digested. So, I feel confident in terms of buying the 295 Call in ICICI Bank at around Rs 4, stop loss at Rs 2 and see a target of around Rs 8."

"Another stock from the midcap space is Container Corporation of India (Concor) in which we have seen massive positions being built in the series, 20 percent and stock is up 19 percent. I am buying the 1,300 Call at around Rs 24, stop loss of Rs 16 and target of around Rs 40," he added.