Buy Dewan Housing Finance, Federal Bank, TVS Motor: Chandan Taparia

Chandan Taparia of Motilal Oswal Securities told CNBC-TV18, "We have selected stocks from different segments which are outperforming the broader market. First is from the NBFC space. In NBFC, we have a positive view on Dewan Housing Finance (DHFL), LIC Housing Finance, Bajaj Finance and Can Fin Homes. All of these stocks have seen attraction with built up of long positions. So, we are recommending to go long on DHFL. The stock has seen a built up of long position in last two to three trading session and surpassed immediate hurdle zone. So, we are expecting this stock to retest the recent swing high of Rs 455. One can buy with a stop loss of Rs 422."

"In the banking space, we will go with Federal Bank. The stock has seen short covering activity and has been forming a positive price pattern on the weekly chart. So, if follow up buying happens above Rs 117, then the stock has potential to head towards Rs 124. So, one can buy with a stop loss of Rs 112," he said.

"In the auto segment, we have seen buying interest in Maruti Suzuki and Ashok Leyland. TVS Motor is a stock which has been consolidating but finding multiple support at every small decline. It has managed to give the highest daily close on the closing basis, so, recommending to go long with a stop loss of Rs 530 and expecting this stock to rally towards Rs 560."

"In the pharmaceutical space, we are taking Lupin where we are expecting a bounce back move of 2.5-3 percent," he added.