Buy L&T 1540 Call, sell 1600 Call: Chandan Taparia

Chandan Taparia of Anand Rathi told CNBC-TV18, "Larsen & Toubro (L&T) is turning from the support zone. The stock is turning from the lower band of the trading range. We have seen strong put writing at 1,500 strike and on closing bases it is holding above Rs 1,500. Although it has not performed in recent past, but the way it is making the price formation and derivatives data indicates that it can move to Rs 1,580 to Rs 1,600."

"That is why here we are recommending bull Call spread, buy Rs 1,540 Call, sell Rs 1,600 Call. In the entire strategy, the risk would be around 22 points and if stoploss moves towards Rs 1,600 then we will get profit of 38 points. As per the rupee terms that profit will come around 9,500 points. It is a better risk reward ratio," he said.