Buy HDFC, Sell LIC Housing Today: Sanjeev Bhasin

The Nifty is likely to see higher than normal volatility on expiry of futures contract today. Global cues are benign with China driving Asian indices higher.

Solid earnings from select corporates lifted sentiment yesterday to see the indices surge in the last 1 hour of trade.

Nifty could see expiry between 7750 & 7800 as most call & put writing is in that range.

For today we are suggesting 2 pairs to make money due to the market volatility.

Longs:

1) Buy HDFC @ Rs 1089, stop loss, Rs 1069, target Rs 1135

2) Buy Shriram Transport @ Rs 913, stop loss Rs 892, target Rs 943

Shorts:

1) Sell M&M financial @ Rs 235, stop loss Rs 240, target Rs 225

2) Sell LIC Housing @ Rs 288, stop loss Rs 294, target Rs 277

We also recommended closing our yesterday pair of short Sesa Sterlite & long PNB. Sesa Sterlite made almost 5 per cent on the down side & PNB met our target of Rs 975 gaining 5 per cent. We also got stopped out on short HDIL & long ITC with losses of 1.5 per cent.

We continue to hold the option strategy suggested yesterday.

Option calendar spread:

1) Sell 7750 July Call @ Rs 25

 Sell 7750 July Put @ Rs 35

Total premium earned Rs 60

2) Buy 7750 Aug Call @ Rs 129

Buy 7750 Aug Put @ Rs 110

Total premium paid Rs 239-Rs 60=Rs 179

Look to square up positions on Thursday near expiry around Rs 220.