Buy NHPC, LIC Housing Finance: VK Sharma

VK Sharma, HDFC Securities is upbeat on NHPC, LIC Housing Finance and has recommended buy rating on the stock.
 
Sharma told CNBC-TV18, “Power stocks were back in demand on Dalal Street and leading in terms of volumes was National Hydroelectric Power Corporation (NHPC) which saw volumes almost four times than what it had on Thursday. From that perspective a lot of open interest was also added. Looking at the kind of open interest that has been built NHPC can be bought next week. So I am suggesting buying the 25 Call at around Rs 1.5, keep a stop loss at Rs 1 and hope to sell this during the settlement at around Rs 3.”
 
He further added, “Another stock that also looks good is LIC Housing Finance because it has just begun its first day of rise. It has corrected almost 6 percent from the highs of Rs 300 that it saw. On January 18, 2013 we have seen open interest being added by 4 percent and price also has appreciated by a percentage point. So I am suggesting buying 280 Call at around Rs 8, keep a stop loss at Rs 5 and hope to sell this also at double the premium at around Rs 15-16.”