Buy Indiabulls Housing, Kotak Bank; short L&T: Chaturmohta

Ashish Chaturmohta of Sanctum Wealth Management told CNBC-TV18, "Indiabulls Housing Finance has been consolidating for two years and today it tested its all-time high. We have seen a build-up of almost 5-6 percent intraday which is on the long side. I believe this stock has a potential to test Rs 875-880 on the upside. One can initiate long call at current level with a stop loss of Rs 815. So in terms of risk reward, 1:3 is the risk reward in the trade and this stock looks very strong in terms of the setup which has been created.""The second bet would be a long call on Kotak Mahindra Bank. In the last 4-5 weeks, it has not moved anywhere. It has been in a range between Rs 785 on the upside and Rs 765 on downside. We have seen strong rollovers in the September series, so we can see good action in Kotak Mahindra Bank. One can initiate a long call keeping a stop loss below Rs 770 and on the upside, expect a target of Rs 820," he said."I have a short idea on Larsen and Toubro (L&T). This stock has been continuously making a lower top-lower bottom formation for last four-five weeks. Today, we have seen an addition of almost 6-7 percent on the short side. So, this stock can correct below Rs 1,400 levels and can test somewhere around Rs 1,375 to Rs 1,380 odd levels. One can initiate a short call keeping a stop loss above Rs 1,470 for a downside target of Rs 1380 levels."