Buy Bajaj Finance, TVS Motor; Sun Pharma likely to test Rs 560: Chandan Taparia

Chandan Taparia of Motilal Oswal Securities told CNBC-TV18, "We have positive view on selective NBFC, auto, and pharmaceutical counters. First trade is buy on Bajaj Finance. The stock has surpassed immediate hurdle of Rs 1,880 and holding the gains. It is just few points away from its lifetime high, so, all set to head towards the new high territory. Recommending to buy on a small dip with a stop loss of Rs 1,880 for an upside target towards Rs 2,010."

"Second trade is a buy on TVS Motor Company. You have seen buying interest in most of the auto companies especially on Ashok Leyland and Escorts. Nifty Auto index itself is making a positive price pattern. So recommending to go long on TVS Motor. It formed an ascending triangle pattern on the daily chart, so, one can trade for a target towards Rs 685 by keeping the stop loss near Rs 648."

"We have one option strategy on Sun Pharmaceutical Industries. After a long time it has surpassed its falling supply trend line forming a triangle pattern. We have seen Put writing at lower strike. It has surpassed its 50 day exponential moving average. So recommending to be with the Bull Call Spread by buying 540 Call and selling 560 Call."

"In the entire strategy, the risk is only 6 points and reward is near to 14 points. So, 1:2 risk reward ratio. We are expecting this stock to head towards Rs 555-560," he added.