Buy Indo Count Industries, Dr Reddy's Laboratories, Motherson Sumi: Chandan Taparia

Chandan Taparia of Motilal Oswal Securities told CNBC-TV18, "Stock specific, midcap and heavyweight counters likely to do well in this series. So I have selected couple of stocks based on their price pattern and the open interest and rollover data base."

"First trade is buy on Indo Count Industries (ICIL). This stock has seen rollover of 91 percent and after a long time this stock is bottoming out. It performed a triangle breakout pattern on the last trading session and holding well above its 50-day exponential moving average. So, expecting 5-7 percent rally in the counter. One can buy with a stoploss of Rs 122 and I am expecting a move towards Rs 134 kind of level in the counter."

"Second trade is in the pharmaceutical pack i.e. Dr Reddy's Laboratories. We have seen strong rollover in most of the pharmaceutical counter including Sun Pharmaceutical, Dr Reddy's. Sun Pharmaceutical has seen 90 percent rollover, Dr Reddy's also seeing 89-90 percent rollovers. So again the buying interest is emerging in the pharmaceutical counter and traders are trading their long best to the next series to drive the momentum. So Dr Reddy's has formed a positive price pattern. Multiple price pattern is happening at current juncture including inverse head and shoulder and cup and handle price pattern. So recommending to buy with a stoploss of Rs 2,395 and looking for target towards Rs 2,500."

"We have positive view on the auto ancillaries as well. Bharat Forge is likely to do well to hit the new high territory while we have positive coverage on Motherson Sumi as well. The stock has taken support at its 50-day exponential moving average. That is why expecting further rally in the counter. We are recommending to buy with a stoploss of Rs 365 and expecting it to head towards Rs 390-400 kind of levels."

"Those who are interested to look at the option can be with the selective metal counter and here we have bull call spread in Tata Steel. Buy 740 Call, sell 760 Call, and one has to pay the premium near to Rs 8 and if the stock moves by 2-3 percent as per the expectation, then one can get returns near to Rs 6,000-7,000 per strategy," he added.