Prefer Federal Bank, Reliance Capital: CK Narayan

CK Narayan, MD at Growth Avenues told CNBC-TV18, "The way the market is positioned people are nervous about just going into something as it is. Just playing momentum that can be fine for a day or two but people hold on to stocks where there is some sort of news. So maybe financials like Reliance Capital, LIC Housing or maybe Shriram Transport Finance Corporation, you could pick one of those and of course a bank or two should be there."

"One of the bank which is not really participated that much but which has the potential to do so because there is additional kickers in terms of rumours and other events which could play out that would be Federal Bank. At about Rs 153 I would take a pun with that. I would also look at stocks where there is some kind of news element. You take for example Just Dial which had okayed the increase in the Foreign Institutional Investor (FII) limit. So the stock has responded favourably to that kind of news," he added.

"I would look for something which is news based, I would look at something like Tata Motors where there is this new talk about commercial vehicle area kind of picking up and that stock is hovering near its highs. A move above Rs 545 should see Tata Motors pick up. So I would kind of link news with the momentum because people need to have some confidence to hold on through intraday gyrations and volatility which you see. So that is how most will sort of persist. Any pocket I would look for, news plus momentum as a trade signal," he said.