Buy IDFC 100 put: VK Sharma

Buy IDFC 100 put, says VK Sharma, Head Private Broking & Wealth Management, HDFC Securities.

Sharma told CNBC-TV18, "IDFC and PFC are apparently very solid stocks but the fact is that the market is punishing them and I think there are fundamental issues there. But nevertheless if I were to just look at them from a derivatives perspective, I think IDFC has seen positions being built to the extent of 7%. The puts are liquid here, so I will buy the 100 put at Rs 3.5 and hope to sell it at Rs 6 and ensure that I have a stop loss at around Rs 2.5, Re 1 lower than this."
He further added, "PFC considered as a very safe bet by most investors but has seen a lot of punishment. So buying the 140 put at around Rs 11, putting a stop loss at Rs 9 and hoping to sell at Rs 15, you can make Rs 6 in the process. But as I said earlier all these bearish outlook will have to be lets say postponed till about Monday and thereafter you can come and take a view."