Voltas may test Rs 325; buy DLF 130 Call: Navneet Daga

Navneet Daga, Head-Derivative Research at IIFL told CNBC-TV18, "Midcap stocks are doing a lot good on the momentum side, on the higher side. So, Voltas is one stock that I have picked up. In capital goods space, we have seen a good amount of decent rollovers and Voltas is the one among the traders favourite category. It has been in a consolidation range of Rs 290-300 and today it has seen some kind of a long build up along with the technical breakout above Rs 305.""To my understanding, going forward in the next couple of trading sessions, we believe that the stock might find much more momentum on the higher side and we are expecting a level somewhere near Rs 324-325 in the next three-four trading sessions. As a trader, one can keep a strict stop loss on the lower side of Rs 296 if the trade doesn’t materialise," he said."DLF has been forming higher base and what we have observed is that there has been a lot of Call writing at the higher levels or somewhere near the levels of Rs 140-145. The stock is sustaining above Rs 130. So to my understanding,the best risk reward is better to go with the Call options because there is still a large number of days trading sessions or less,probably the expiry. So, I would be going long on 130 Call options at a price of somewhere near to Rs 6-6.25, keeping a strict stop loss on the lower side of Rs 3 and would be expecting the stock price to move towards Rs 140. That is where the call prices would move towards Rs 12. So one can keep a stop loss of Rs 3 and one can trade for this call option to targets of almost Rs 12.""The three oil marketing companies (OMCs) have seen quite aggressive long build up but offlate what we are seeing in BPCL is some kind of an unwinding pressure as well as on the chart side it is looking that some kind of a divergence trade has been visible. So the RSI is forming on the lower side and the stock is continuously trading on the higher side. So some negative divergence is visible in the stock. So, the strict stop loss on the higher side if I go short somewhere around the levels of Rs 970 will be near the levels of Rs 986 to Rs 990 range. I will trade for the lower side targets of Rs 940 on this particular stock."