Chandan Taparia of Motilal Oswal Securities told CNBC-TV18, "Yesterday the market was choppy, but the midcap stocks have done well. So stock specific action is likely to be there. Our team has discussed couple of stocks, so, I am taking that opportunity to name those stocks – KEC International, Sadbhav Engineering, Jain Irrigation, and JK Lakshmi Cement. We are focusing as per the technical price is concerned."
"I am recommending to go long on Tata Steel. Overall metal sector is doing well. We have seen the bottom out process after the decline of last couple of trading sessions and in metals we have seen the buying interest in Hindalco, Vedanta, Jindal Steel & Power and JSW Steel."
"Now Tata Steel is forming a breakout from its symmetrical triangle pattern which can aid some momentum. We have seen built up of long position with Put writing activity. So expecting this stock to hit the recent 52-week high of Rs 735 or in fact Rs 744. So we are recommending to buy with stop loss of Rs 703 for an upside target towards Rs 744."
"Second trade I have selected is from housing finance - Can Fin Homes. After a long time it has given the consolidation breakout on the daily and weekly scale. However, it has already rallied 5-7 percent, but longs are intact, so that momentum could continue. Here we are looking for an upside target towards Rs 544, so, one can buy with a stop loss of Rs 495," he added.
"One strategy we are looking at is buy on Larsen and Toubro (L&T). Here we are playing with the bull call spread. After a long consolidation, the stock has given breakout and this breakout clearly indicates the stock is all set to head towards Rs 1,300-1,310 kind of levels. So one can play with the bull call spread by buying 1,260 Call and sell 1,300 Call."
"In the entire strategy, one has to pay the premium of 10 points while the reward is near to Rs 25-30. So one can also Put the spread, spread stop loss of Rs 5,000 and we are looking Rs 10,000-15,000 return in this strategy going forward," he added..
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