Chandan Taparia positive on Tata Motors, Hero Motocorp

Chandan Taparia of Anand Rathi told CNBC-TV18, "We have seen a strong momentum in the market and most of the stocks which are adding the built up of long positions are performing the market. Apart from Tata Motors and Hero Motocorp we are positive on Bharat Forge. The stock is making the higher-top and higher-bottom and trading near to the lifetime high. We are continuously adding built up of longs and rolling more than 90 percent from last few months. So here we are expecting this to target Rs 1,070 on the higher side."

"One can buy Ashok Leyland. The stock has seen built up of long positions by more than 25-30 percent in this series. Trading above Rs 60 we are observing fresh Put writing at that strike and that can extend the move on the higher side. However, already the stock has moved so much, so better to trade with 62-50 strike which is trading near to Rs 1.50 to keep the stoploss of 50 paisa and trade for the upside target of Rs 3.50," he said.

"While we have a positive view on the Ashok Leyland and Bharat Forge, we are expecting Tata Motors to find hurdle near to the Rs 540 zone. We are observing Call writing at the higher strike and this is a supply zone where a stock comes in first to the lower level. That is why we are recommending to go for Tata Motors 520 Put. So, we have the negative view on the Tata Motors trade with the Put while positive view on Ashok Leyland and Bharat Forge."

Disclosure: Analyst is suggesting all trading ideas to his clients.