Buy BHEL 260 Call, sell 290 Call: VK Sharma

VK Sharma of HDFC Securities told CNBC-TV18, "We are bullish on Larsen & Toubro (L&T) and Bharat Heavy Electricals (BHEL) and not to forget that for the current series while the Nifty is down 0.8 percent, the capital goods sector per se is up 3 percent even on year to day (YTD) basis while the Nifty is up 0.5 percent, capital goods is up 13 percent. So it shows and there is a fresh breakout in the index."

"Obviously we would want to buy BHEL and there I am suggesting a bull spread. You buy 260 Call at around Rs 7; sell 290 Call at around Rs 2. Your cost comes to 5 and maximum profit would be around Rs 20," he said.

"You cannot miss out L&T, which has seen position being build to the extent of 10 percent in the current series, the stock has gone up 2 percent and I am suggesting buying the 1,850 Call at Rs 48 with stop loss at Rs 35 and a possible target of Rs 70 in the current series but between the two if I have to choose then BHEL is a better pick," he added.