Prefer Indiabulls Housing, target Rs 700-705: Sahil Kapoor

Sahil Kapoor of Edelweiss Financial Services told CNBC-TV18, "There is a pattern in Indiabulls Housing Finance. If you look at one-one-and-a-half year’s chart, on an average the stock declined about 14 percent from its swing peaks and the current correction is stretched to about 17 percent which is one of the highest in the last one-one-and-a-half years. I think largely it can be attributed to a lot of FIIs ending selling. So it has become quite oversold, it tried to touch its 100-day moving average plus you are seeing good spurt in the stock today."

"We recommend Indiabulls Housing for a target of about Rs 700-705. However, whenever the stock moves the moves are generally very sharp, so again it can give a sharp move on the upside," he said.

Disclosure: Analyst has been advising the stock to his clients, so they may have these positions.