Buy Dewan Housing Finance, Bharat Forge, Bank of India: Chandan Taparia

Chandan Taparia, Derivative & Technical Analyst at Motilal Oswal Securities told CNBC-TV18, "I have a buy on Dewan Housing Finance. The stock has taken support at its rising trendline and surpassed the immediate hurdle of Rs 444 zone. We are expecting fresh leg of rally to test the new high territory, so recommending to buy with a stop loss of Rs 444 for an upside target of Rs 480."

"I have a buy call on Bharat Forge. In the last trading session the stock added open interest near 10 percent and surpassed the immediate hurdle of Rs 1,130 level. It has taken support at the lower band of the rising channel on the weekly chart, so it offers an opportunity to head towards Rs 1,200 kind of level. So one can buy with a stop loss of Rs 1,120 for an upside target."

"The third trade is on public sector undertaking (PSU) banks. Bank of India has been moving upwards from last two-three weeks and short covering has started to witness in the counter. However, most of the PSU stocks started to witness selling at higher levels but the way it has recovered and closed above 50-day exponential moving average, some short covering might be there which may take it to Rs 157. So we are suggesting buying with a stop loss of Rs 144," he said.

"We are seeing buying interest in most of the metal counter and Hindalco Industries has given the highest daily close. It has seen fresh put writing at 200-205-210 strike which indicates that this stock is all set for new lifetime high territory; in fact we have seen buying in most of the metal counter including Jindal Steel & Power and Tata Steel. So, expecting Hindalco to move towards Rs 215-220 kind of level. So, suggesting buying with the bull Call, buying 210 Call and selling 215 Call. In the entire strategy the risk is only Rs 1.5 while reward is around Rs 3.5," he added.