Buy L&T 1500 Call, Century Textiles may test Rs 1000: Amit Gupta

Amit Gupta, Head-Derivatives at ICICIdirect told CNBC-TV18, "Stock specific, if you look at the rolls positions, we have seen a good short covering pattern coming out in the capital goods space. This is one space which had not participated so far because market has reached to near life highs and it has been holding there at the low volatility.""I think the stocks like Larsen & Toubro (L&T) from the capital goods can perform in the March series because 1,500 was the highest Call base in February. It has been closing above this, so, the Call writers for the March series also will be looking at a place which will be much higher. I think possibly Rs 1,570-1,600 is where the positions are likely to move up. So, closure of these Call writers' positions are likely to spurt the premium," he said."We are advising our clients to buy L&T 1,500 Call option only for the March series and it is possible in the coming couple of weeks you will be in-the-money in this particular strategy." "Another one from the core industrial space I think from the cement is UltraTech Cement which had performed better, there are other midcap stocks which have started performing and among that Century Textiles is one such stock where still the open interest is at elevated levels and there is still a possibility of a good short covering pattern to pan out. The stock has a good support near Rs 900 and I think it can move beyond Rs 1,000 levels also. So, this is another stock which is there on our radar for the March series."