Amit Gupta of ICICIdirect said, "Since this is the start of the series, I think the trader should start looking at buying stock specific Call or Put options. Axis Bank since the month of February has consolidated near Rs 500-520 levels, but from February to May, there was a very high short build up. Around 62 percent of addition was seen on the short side. However, the positive was that the stock was not giving up despite the various news flows and that is why from the last series we saw that those shorts have started getting closed and almost 15 percent of short closure was seen in this. Near expiry, from Rs 490 when it moved above Rs 500 in the yesterday’s session, we saw that 500 Put base for July series has become the highest and there was a good closure of Call positions at 500 strike. So, it is possible this stock can form a base near Rs 500 and can start moving toward the Call base of 520 or then possibly higher."

As per the Gupta, "We are buying the 520 Call base for the time being, Call strike for Axis Bank which is available somewhere near Rs 10-11 and keep a stop loss of around Rs 5. I think eventually looking at this base formation of the stock, there may be a scenario when it will start moving up. That will benefit your call positions." 

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