Buy Muthoot Finance, Power Grid Corporation: Chandan Taparia

Chandan Taparia, Derivative & Technical Analyst at Motilal Oswal Securities told CNBC-TV18, "We have positive view on Muthoot Finance. The stock has taken support near Rs 382-383 zone after profit booking decline of last three-four trading sessions. It has taken support at its rising support trend line and added open interest. Overall longs are rolling into the next series, so expecting this stock to continue its upmove towards Rs 425. So we are recommending buying with a stop loss of Rs 388."

"We have a buy on Power Grid Corporation of India. The stock has formed a bullish flag pattern on daily chart. Overall trend is positive and every small decline has been bought in the stock. So we are expecting this stock to head towards new high territory, recommending buying with a stop loss of Rs 203.50 for an upside target of Rs 215 levels," he said.

"We have positive view on selective banks like Kotak Mahindra Bank, IndusInd Bank, YES Bank and HDFC Bank which have seen strong momentum with build-up of long position, longs are rolling. So they are likely to outperform."

"In Option strategy we are recommending to be with Tata Motors. The stock has recently made multiple bottoms near Rs 435-440 zone and bounced back smartly on the lower levels. On weekly chart it is forming bullish engulfing pattern after the weakness of last three-four weeks. So it has given a classical example of bullish pattern after a long time. I am expecting this stock towards Rs 480, so one can go for cold butterfly spread and in that one has to buy 460 Call, sell two lots of 480 Call and buy one lot of 500 Call. So those who are interested to be in strategic and be with long butterfly spread. Otherwise those who are looking for naked buying in Future, can buy with a stop loss of Rs 444 for the upside target towards Rs 480 levels," he added.