Chandan Taparia, Derivative & Technical Analyst at Anand Rathi Securities told CNBC-TV18, "I am going long on FMCG counters and Hindustan Unilever will be the first trade. We have seen the bottom process in most of the FMCG counters like HUL, Colgate Palmolive (India) and Marico."
"HUL has made the bottom. We have seen fresh Put writing at 800 strikes. It has taken support near weekly support trendline. Therefore, recommending buying with a stop loss of 800 for a target of Rs 848," he said.
"However, apart from that we have seen new high in Dow and S&P and because of that, some metal counters might see the momentum. Hindalco Industries has seen the recovery in the last trading session and even after the sharp decline of the broader market, this stock is up by around 10-11 percent and trading above its volume weightage average. So, longs are intact in the counter and longs are rolling, so expecting it to bounce towards Rs 172. One can trade with option by buying 165 Call and expecting this Call to move towards Rs 8."
"I have a buy on LIC Housing Finance. However, the stock has seen build-up of short position at the time of decline but now it is consolidating from last five-six trading sessions. It has immediate hurdle near Rs 523-525 and above that a spike of 3-4 percent lead by sharp short covering cannot be ruled out. So, looking for that bounce back move in the counter and suggesting buying 520 Call and expecting this Call to head towards Rs 12. Traders can put stop loss of Rs 2 for this trade."