Buy Hindalco 190 Call, Glenmark may test Rs 940: Amit Gupta

Amit Gupta of ICICIdirect told CNBC-TV18, "From metal space, we are picking Hindalco Industries and buying 190 Call option of the stock because if you see the highest Call base was at Rs 180 but we have clearly seen the closer these Call writers, positions have become vulnerable. They are pushing their positions to the higher strikes. So, right now they are at Rs 190 but in the last session also there was almost 2.5 percent closer. Our sense is these options premiums are going to increase in the metal pack and particularly in Hindalco and it should move towards Rs 194 eventually." "The other stock that we are picking is from the pharmaceutical space - Glenmark Pharma because we believe it has spent enough time now near Rs 900 levels and these are the levels exactly when Nifty was trading near 8600. Nifty has come down significantly, but still Glenmark Pharma is hovering there and we have seen that in the last few sessions, some sort of short closer is coming into that stock," he said."In the last session also, the open interest had declined from the higher levels and my sense is that if one can keep Rs 885 as the stop loss, the stock can eventually move towards Rs 930-940 levels. So, we can look at some sort of risk-reward trade in the pharma space in Glenmark Pharma."