Hemant Thukral of Aditya Birla Money told CNBC-TV18, "We are recommending two midcap stocks and both are based on same philosophy of open interest increase with cash volume increase. The first is CESC. The stock jumped on Friday on the back of 9 percent open interest addition, delivery mark was 43 percent when cash volume went up to 17 lakh shares. Its average of five days of cash volume is 5 lakh, so there is three times volume and the delivery volumes have jumped to 43 suggesting that buying has come both on the cash front as well as F&O front also. Midcap power stocks, in any case are looking in flavour, so this stock looks good as a trading long. We are maintaining a stop loss of Rs 912 and we see a target of Rs 965-970 coming."
"The second stock that we are recommending is also a midcap - Kaveri Seed Company. A sector like fertiliser which has seen across the board some buying interest coming but this stock specifically, 18 percent open interest addition was seen on Friday, again this stock saw cash volume of 22 lakh shares against 5 day average of 6 lakh and the delivery marking was 41 percent, so a lot of buying coming in cash as well as F&O. Here we are suggesting a stop loss of Rs 668 and a target of Rs 715," he said.
"We are giving long Call on both these stocks with a time horizon of two-three trading sessions."
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