Sell ONGC, buy Asian Paints: Hemant Thukral

Sell ONGC, buy Asian Paints: Hemant Thukral
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Today we have chosen two heavyweights which are pointing to different directions. One is ONGC. We feel that yesterday the stock has seen 5 percent and fresh shorts being pressed. More important is that while the ONGC 200 Call has the highest open interest (OI) and yesterday we saw that those Call writers were pushing on the downside towards 195 Call, so very clearly the pressure will be felt. We feel that ONGC may have to test the next strong support which is around Rs 181-182 band. So, we are recommending a short in ONGC with a stop loss of Rs 195 and a target of Rs 181-182. The other index heavyweight that we are recommending is on the buy side. Asian Paints first saw long positions added up to the tune of 3 percent. What was also important to see was now 1,000 Put has the highest open interest. That means the base is firming around Rs 1,000 levels. Technically, Rs 1,009-1,010 should be kept as a stop loss and we see Asian Paints testing Rs 1,060-1,065 zone. So ONGC is a sell and Asian Paints is a buy for us

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