Buy Idea Cellular 95 Call: VK Sharma

Buy Idea Cellular 95 Call at around Rs 2.9 with a stoploss of Rs 2 and hoping to sell it at Rs 6, says VK Sharma, HDFC Securities.

Sharma told CNBC-TV18, "Because of the fact that the fees for the 2G auctions were cut after the markets closed, so to that extent I am suggesting buying a 95 Call in Idea Cellular at around Rs 2.9 with a stop loss of Rs 2 and hoping to sell it at Rs 6. Similarly Bharti Airtel also is likely to do well in the morning then going down it will have to go up first."
He further added, "More rating agencies have come down on some of the PSU banks. So Canara Bank for instance is one in which further downgrade has happened. So although I don’t read too much into these agency downgrades but the fact is that if you are holding this stock not for trading but if you are holding this stock in a large quantity then I am suggesting buying the 460 Put which was available at Rs 10 and keep a stop loss at Rs 6."
"If you are just holding on for the rest of the series you might as well not keep a stop loss, you just hold on and just for insurance purposes because this is a stock which will go up once the interest rates are reduced because it has a large amount of hold available for sale portfolio in its bond holdings."