Buy Hero Motocorp 1900 put, says VK Sharma

Buy Hero Motocorp 1900 put at around Rs 22, says VK Sharma, HDFC Securities.

Sharma told CNBC-TV18, "If you were to talk fundamentally then of course Amara Raja looks better, but that is not in the derivatives. Exide Industries does look weak, so I think it can fall another Rs 3-4."
He further added, "Ashok Leyland is slightly weaker. I would like to buy a put in terms of Hero Motocorp where I am suggesting buying the 1900 put at around Rs 22, keep a stop loss of Rs 10 and hope to sell it at Rs 50 making Rs 28 in the process."
"NHPC has surprised us in terms of the gains and largely because of the fact that more capacity is coming up and this is a stock which is essentially a dividend yield stock and basically a stock for pensioners. So I am suggesting buying the 22.5 call at around Rs 1.20, it quoted at Rs 1.60. So only if you are able to get at Rs 1.20 levels then only you buy this and you can hope to make some 40-50 paise more on this. Obviously you need to keep a stop loss at 80 paise in the put that you buy."