Buy Indiabulls Housing Finance, Hexaware Tech; sell Havells India: Chandan Taparia

Chandan Taparia of Motilal Oswal Securities told CNBC-TV18, "I have seen couple of counters which are holding the gains and has potential to perform in this market. First trade is a buy on Indiabulls Housing Finance. The stock has taken support at its rising support trend line. It has also formed a morning star candlestick pattern on the daily chart, indicated the formation of lower highs, lower lows of last four to five trading sessions."

"The stock has potential to witness a sharp recovery. It has also seen a rollover of 90-91 percent with positive roll calls. This also indicates that longs are rolling to the next series. So, we are recommending to buy with a stop loss of Rs 1,245 and his stock has potential to move towards Rs 1,313 level."

"We have seen buying interest in most of the IT counters including Mindtree, NIIT Technologies, Tata Consultancy Services (TCS) and Infosys. Most of the IT counters are adding built up of long position. Hexaware Tech has also seen 83-85 percent rollover and recently it has bottomed out with multiple support of Rs 325. It has surpassed its 50-day exponential moving average and forming a positive price pattern after the decline for last three weeks. So, expecting a positive momentum to commence in the counter towards Rs 368. One can buy with a stop loss of Rs 343."

"Havells India tried to surpass its multiple hurdle of Rs 525 zone and surrendered its gain below Rs 500 levels. In the last series, it was holding Rs 500 because of the Put writing activity and now as it is holding below Rs 500, the stock may start fresh decline."

"So, I am expecting 3-4 percent decline into the counter. One can sell with a stop loss of Rs 505 for downside target towards Rs 475 levels," he added.