Buy M&M Financial Services, IOC; Canara Bank may test Rs 330: Chandan Taparia

Chandan Taparia of Motilal Oswal Securities told CNBC-TV18, "We have positive view on selective non-banking financial companies (NBFCs) and most of these companies are trading near to the recent lifetime high and longs are intact. So we have positive view and that is why we are recommending to buy Mahindra & Mahindra Financial Services. The stock has formed tweezer bottom pattern on the daily chart and longs are intact. It is up by around 4.5 percent in the entire series, trading above its volume weightage average. So momentum could trigger it to hit higher level. We are recommending to buy with a stop loss of Rs 407 for an upside target of Rs 438."

"Second trade is on oil marketing company, most of the oil marketing companies (OMCs) are doing well and Indian Oil Corporation (IOC) has been outperforming. It is up by around 19 percent and trading much higher than its volume weightage average. We are expecting a short covering rally into the counter, fresh long with a delivery volume indicates positive momentum to continue. So, recommending to buy with a stop loss of Rs 430 for an upside target towards Rs 458," he said.

"Last trade is on Canara Bank. Public sector undertaking (PSU) banks are holding short positions; we have seen sustained Call writing in most of these companies. The stock failed to surpass the previous support and swing low of 346. So, it is likely to act as a hurdle now, so expecting the stock to go down to 332-330. One can buy 340 Put which is trading near 3.5. One can put a stop loss of Re 1 for a target of Rs 8," he added.