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Last Updated : Aug 12, 2015 06:12 PM IST | Source: CNBC-TV18

Here are Chandan Taparia`s top trading ideas

Watch the interview of Chandan Taparia of Anand Rathi Sec with Ekta Batra and Anuj Singhal on CNBC-TV18, in which he shared his reading and outlook on Futures and Options (F&O) side of the market, specific stocks and sectors.


Watch the interview of Chandan Taparia of Anand Rathi Sec with Ekta Batra and Anuj Singhal on CNBC-TV18, in which he shared his reading and outlook on Futures and Options (F&O) side of the market, specific stocks and sectors.

Below is the verbatim transcript of Chandan Taparia's interview with CNBC-TV18

State Bank of India

"We are expecting State Bank of India (SBI) to move by 4-5 percent on either side given the long strangle. In the beginning of the series, it has rallied well and now consolidating from last 4-5 trading sessions. So, we are expecting a volatile move in the counter, suggesting to go for the long strangle."

"Buy 275 Put and 300 Call. In the entire strategy, cost would be around nine points and that will be the maximum risk. If the stock moves above the breakeven of Rs 309 or below Rs 266, then we are going to get profit. So, overall, the sense is that we are expecting volatility. So, suggesting to buy in Calls and Puts out of the money strike," he said.

Cipla

"Cipla is holding well. We have seen a strong recovery in the last 6-7 weeks as it has taken support near to Rs 575 zone and continuously moving up fast with built up of long positions. It has a immediate hurdle near to Rs 730 zone and holding above Rs 731 may take it to Rs 755 to Rs 760 levels."

"The overall trend is positive and after the consolidation, I am expecting this momentum to continue for the coming trading session. So, recommending to go for 740 Call. Keep a stop loss of Rs 11 and expecting this Call to move towards Rs 27-28 on the higher side," he added.

DLF

"We have seen strong bounce back move in most of the real estate counter including DLF, Indiabulls Real Estate and Housing Development and Infrastructure (HDIL). DLF has negated its negative trend of last couple of series and now the way it is finding sustained buying interest at every decline indicates that this stock is now finding a bull’s grip. We have seen a sharp correction in the market in the last two trading sessions. But DLF is holding well above Rs 122-123. That is why we are recommending to go long and expecting it to move towards Rs 132-135."

"One can go for the bull call spread in DLF by buying 125 Call and selling 135 Call. In the entire strategy, risk would be around 3.5 points. And as per the view, if the stock moves towards Rs 135, then we are going to get profit of around 6.5 points. So, overall it is 1:2 risk ratio and if the stock moves then we are going to get profit of around Rs 13,000 in this strategy," he added.

Hindalco Industries

"We have seen sustained selling pressure in most of the metal counters. Hindalco Industries is witnessing sustained selling pressure and the Call writing at higher strike. We have seen built up of short positions. Today itself open interest is up by five percent with decline in prices. Recently it has failed to cross immediate hurdle of Rs 112-113 level."

"I am expecting it to go down towards Rs 100 and even lower level. So, suggesting to buy 105 Put, keep the stop loss of Re 1 and expecting this Put to target towards Rs 6," he said.



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First Published on Aug 11, 2015 12:08 pm
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