Buy Coal India 360 call, says VK Sharma

VK Sharma, Head Private Broking & Wealth Management, HDFC Securities is of the view that one can buy Coal India 360 call.

Sharma told CNBC-TV18, "Coal India is showing strength rightly from this perspective that the penalty which Coal India has were proposed for itself is very minimal, to that extent people have given out a buy and the market has followed suite, so technically and both in F&O perspective positions have been built. So the suggestion here is to buy the 360 call which was available at around 7, you don’t buy at 7, wait to come to around 5-5.5 at that point you buy and with a stop loss of 2 and you can hope to sell this at around Rs 5 profit from the level that you buy."
The company touched its 52-week high Rs 422.30 and 52-week low Rs 293.75 on 31 May, 2011 and 22 Dec, 2011, respectively. Currently, it is trading -15.39% below its 52-week high and 21.63% above its 52-week low. Market capitalisation stands at Rs 225,683.70 crore.