Pick Maruti, Ashok Leyland, Kotak Bank, Tata Chemicals, Torrent Power: VK Sharma

VK Sharma, Head of Business, Private Client Group at HDFC Securities told CNBC-TV18, "Essentially we are looking at the fact that no news is good news on the weekend. Therefore the market is likely to edge higher. So, we are looking at two auto stocks. One is Maruti Suzuki and other is Ashok Leyland."

"In Maruti, I am suggesting to buy a bull spread. You buy the 8,000 Call and sell the 8,300 Call. Your cost comes to around Rs 90 and the maximum possible profit for you would be around Rs 210. So this a long bull call that I am suggesting to construct in Maruti. I think it will be beneficial because the duty structure has not been to the extent feared."

"In Ashok Leyland, I am buying simply because the fact that the open interest (OI) continues to be added for the whole series. 33 percent up OI and yesterday also total 7 percent OI has been added with the stock going up by 3 percent. I am buying the 117.5 Call at around Rs 2.9, a strong stop loss at Rs 2 and a possible target of around Rs 5."

"Kotak Mahindra Bank continues to excel. For the series per se we have seen 16 percent OI being added, and the stock is up 3 percent. On Friday, despite OI adding up by 5 percent, the stock went up by just 1 percent. I am buying the 1,010 Call here at around Rs 15, stop loss at Rs 11, and target of around Rs 22 which should double the premium, almost 50 percent increase in the premium if you buy this Call," he said.

"If you look at conviction, Tata Chemicals is a high conviction stock, not only from the point of view of a trader, but also from the point of view of an investor where we believe that the company is going to not only restructure itself, but also changing its colour; so to say it will become from industrial consumer, 85 percent of the sales come from industrial uses, that the company has said consumer is 15 percent, we will increase the component of consumers to around 50 percent in the next three years. So, this is a company that is going to change colours. However, for the short term, I am buying the 630 Call at around Rs 14, stop loss at Rs 10, and a target of around Rs 22."

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VK Sharma

Head - PCG and Capital Market Strategy|HDFC Securities

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"Torrent Power in last series added 92 percent OI. The stock went up by 18 percent. In the current series, the stock is up still 6 percent, and is up in terms of OI, fresh additions have been added. So, I think the stock has the potential to go up to something like Rs 230. I am buying the 225 Call here at around Rs 7, stop loss at Rs 5, and a target of around Rs 11."

"Kajaria Ceramics is one of those stories where you play the consumption story and also the fact that the business moves from the un-organised to the organised. Just buying the leader has helped us buy Asian Paints years ago, and therefore a similar story could play out here as well. For the short term, we are buying the 740 Call at around Rs 20, stop loss of Rs 15, and a target of around Rs 30," he added.