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He spoke at length about State Bank of India (SBI), Larsen and Toubro (L&T) and Vedanta Ltd.

“First one is a buy call on L&T. It broke to an all-time high and post that because of the market being in a temporary correction, we have seen a pullback in L&T, which seems like a good opportunity to accumulate. So a bull call spread can be initiated. So one should buy 1,500 call option and sell 1,560 call option. The net spread is at Rs 17, the target for the same will be Rs 30 and a stop loss can be maintained at Rs 9. Second strategy is a buy call on SBI. SBI broke to an all-time high and now it has pulled back to the previous support areas, which I believe should be a very important area because some of the put writing is around the current level. We are expecting a bounce back on SBI. So a bull call can be initiated. 340 call has to be bought and a 350 call can be sold. The net spread is Rs 3.20, we are looking for a target of Rs 6 and a stop loss can be maintained at Rs 1.5,” he said.

“Lastly one sell call on Vedanta. If you look at the metal pack, the overall sector is showing some downtick and we expect that this breakdown that has happened on Vedanta should see some follow-up selling. So bear put spread can be initiated. 165 put can be bought, 155 put can be sold. The net spread is at Rs 3.40, the target for the spread will be Rs 7 and a stop loss can be maintained at Rs 1.5,” he added.

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First Published:Jun 18, 2019 9:01 AM IST