Buy Tata Chem, Reliance Capital, Kotak Mahindra Bank: VK Sharma

VK Sharma, Head Private Broking & Wealth Management at HDFC Securities told CNBC-TV18, "Tata Chemicals is one stock which has done well, almost risen 21 percent in the series and 45 percent open interest has been built. This is a stock which is going to newer highs now, so I am buying 560 Call but I have slightly tampered by buying. I will buy at Rs 4. Yesterday it closed around Rs 5.6; the target is Rs 8, keep a stop loss at Rs 2.""I am returning to Tata Communications for third time in this series. In the first two Calls, the profit targets were reached, so time to give another call. I am suggesting buying 500 Call at around Rs 4. Yesterday, it closed around Rs 5.7, keep a stop loss at Rs 2 and target around Rs 9," he said. "Reliance Capital is one stock in which open interest (OI) has not increased, in fact OI has decreased. The stock has gone up by 7 percent but this is almost at 17-month high, so closing at this level augurs well for the future. Therefore, for the current series I am buying 470 Call at around Rs 7.5, stop loss at Rs 4 and target of Rs 14.""Kotak Mahindra Bank is among the better ones, almost 20 percent open interest being built and yesterday also 5 percent was added. The stock didn't go up much, just 1 percent rise. So there is still some room for the stock to end with flourish in the current series. Therefore, I am buying 780 Call at Rs 4.8, stop loss at Rs 2 and target around Rs 10."