2 June 2017: VK Sharma, Head of Business, Private Client Group at HDFC Securities said, "The private banks have been doing well. In this sector I like DCB Bank which is now at an all-time high. I am doing a bull spread here because the stock is into an altogether new zone. I am buying the 205 Call at Rs 7 and selling the 220 Call at Rs 3. This gives me a maximum profit of Rs 11 and brings down my cost to around Rs 4."
He further added, "In Karnataka Bank also which is now cruising at an 8-year high, I am buying the 180 Call at around Rs 6.3, putting a stop loss at Rs 4 and a target of Rs 10."
"Mahindra and Mahindra (M&M) is not only an auto play but also a play on the monsoon. So, I think there is a normal monsoon and this normal monsoon -- agriculture accounts for 14 percent of our economy. The feel good factor is going to be good for the consumer as well as the farmer. The stock also looks better placed. So, I am buying the 1,440 Call at around Rs 30, putting a stop loss at Rs 20 with a target of around Rs 50. Almost 37 percent of open interest (OI) has been added in the current series," he added.
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