Buy Bharat Financial Inclusion, Axis Bank; sell Bank of Baroda: Chandan Taparia

Chandan Taparia of Motilal Oswal Securities told CNBC-TV18, "I have selected couple of counters which may outperform the market and may continue their positive momentum led by built up of long position. Fresh trade is buy on Bharat Financial Inclusion. The stock has given positive breakout on daily, weekly and monthly chart and even after the market pressure, the stock is holding its support zones. So, recommending to buy with a stop loss of Rs 847 for an upside target towards Rs 920-930 levels."

"Second trade is on the sell side is on Bank of Baroda. We have seen selling pressure and the built up of short positions in most of the PSU banks, including Bank of Baroda, Punjab National Bank and State Bank of India. So, recommending to go short on Bank of Baroda on small bounce back move with a stop loss of Rs 149. This stock has potential to again retest the low of Rs 136 on the lower side. So, one can continue to be with the negative side or trade with the Put of 140 strike," he said.

"The last trade is buy on Axis Bank. Here, I am recommending strategy because the stock has seen the correction from higher levels and now finding multiple support. So better to be with the covered Call to play this small bounce back move on the consolidative phase of the counter. So, recommending to buy future near Rs 495, sell 510 Call near Rs 4. So in the entire strategy break even comes to Rs 491, keep a stop loss of Rs 485, 1:2 risk reward ratio, and I am expecting this stock to find support near Rs 485-490 and slow and steady head towards Rs 510 level."