Buy Ashok Leyland 90 call, sell 100 call: Chandan Taparia

Chandan Taparia of Anand Rathi Securities told CNBC-TV18, "We are continuously positive on Ashok Leyland. In last four series the stock was trading in between Rs 64-77 and as it crossed Rs 77, it rallied towards Rs 100 but in last couple of trading sessions it made low near to Rs 78. It is a classical example of a resistance becoming support and as per its price waver and the derivatives data, I am expecting it to retest its high of Rs 99.70 and even move above Rs 100.""So, recommend to go for the bull Call spread, Buy 90 Call and sell 100 Call. In the entire strategy, risk is around Rs 3.5 and if it moves towards Rs 100, then we may get profit of around Rs 6-7. Overall trend is positive and I am expecting the stock to move towards Rs 100 in next couple of trading sessions," he added.