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Last Updated : Feb 27, 2018 10:29 AM IST | Source: CNBC-TV18

Buy Apollo Tyres, Siemens, Federal Bank: Amit Gupta

Amit Gupta of ICICIdirect recommends buying Apollo Tyres, Siemens and Federal Bank.

Amit Gupta, Head-Derivatives at ICICIdirect told CNBC-TV18, "We are recommending 190 Call option of Apollo Tyres to buy because this is a long series and implied volatility are still low. So to play stock specific momentum, we can still buy the Call options of this particular series. With 190 Call which is around Rs 7, we are expecting it to move towards Rs 14-15, so one can buy this."

"The other stock is Siemens in the capital goods space. We have seen the move in Bharat Heavy Electricals (BHEL) but Siemens is forming a base near Rs 1,180 and Rs 1,200. So far this stock also has not performed that much and in the recent result, it has made high around Rs 1,259. So those levels should be taken out. However, looking at the volume pickup in the stock because we have seen one year high volume in the stock near Rs 1,180, it formed a base there and now those volumes are seen near Rs 1,210."

"Eventually it should move above these levels and should start outperforming. So this is another stock at the lower band which can be looked at," he said.

"There are two or three stocks from the private banking space like South Indian Bank or Karnataka Bank and Federal Bank, where the long positions are very steeply rising. The open interest is also near the life highs." 

"However, Federal Bank for the last couple of years, from 2014 onwards was facing resistance near Rs 80-82 levels. Now it has convincingly come above those on the back of huge long additions which has come up in the last couple of series. I think it is very convincing break out in the stock, declines are not much expected. Infact the move can extent towards Rs 97 or Rs 98. So we should be buyer in small private banking stocks right now in the market."

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First Published on Mar 1, 2017 11:35 am
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