Buy L&T Finance, Hexaware; trade Bull Call Spread in Coal India: Chandan Taparia

Chandan Taparia of Motilal Oswal Securities told CNBC-TV18, "We have a buy on L&T Finance Holdings. The stock has formed a flag pattern on the daily chart. It has been making higher tops and higher bottom formation and  trading near to its recent lifetime high. The Nifty financial index is also making the new lifetime high. So, recommending to buy with a stop loss of Rs 202 for an upside target towards Rs 218."

"Second trade is from IT pack - a buy on Hexaware Technologies. In the last couple of trading sessions, we have seen open interest addition of around 15-17 percent followed by short covering activity. So small follow up could lead this stock to much higher levels. Recommending to buy with a stop loss of Rs 271 for an upside target towards Rs 290-292," he said.

"The last is option strategy in on Coal India. The stock has negated the negativity of last couple of months, it has negated the lower top long term formation and managed to hold the support of Rs 250 with the Put writing activity. We have also seen the Call unwinding in 260 Call which indicates that Rs 270-275 kind of level could be seen in next couple of trading sessions. Recommending to be with Bull Call Spread by buying 260 Call and selling 270 Call."

"In the entire strategy, risk is only 3.5 and expecting the stock to move towards Rs 270 kind of level. In that scenario, the reward will be 6.50 points in the entire strategy,"  he said.