Buy ICICI Bank, Vedanta; sell LIC Housing Finance: Chandan Taparia

Chandan Taparia of Motilal Oswal Securities told CNBC-TV18, "We have seen buying interest in selective counters in last trading session even after the selling pressure in the market. I feel that some range bound move might be there before finding some selling pressure at higher levels. So recommending to go long on ICICI Bank. The stock has been holding its multiple support if Rs 285 zone from last four weeks. In the last trading session also it has taken support at Rs 284.5 and recovered well with Put writing activity. It also formed a bullish flag pattern on the weekly chart which is giving some sense of up move towards Rs 301-303 levels. So, I am recommending to buy with a stop loss of Rs 285 for the higher target."

"Second trade is buy on Vedanta. We have seen selling pressure in most of the metal counter in last three to four trading sessions, but Vedanta has taken support at the recent swing lows. On the daily chart, it is forming the higher lows which indicates that some buying interest is emerging on decline and overall the stock is range bound. So, I am expecting this bounce back to extend towards Rs 249 and one can put a stop loss of Rs 230," he said.

"The one sell idea is on LIC Housing Finance, the stock has formed a bearish engulfing pattern on the daily chart and the weekly chart. It has seen built up of short position and some Call writing started to happen in the counter. So one can sell with a stop loss of Rs 768 and the stock has seen some potential towards Rs 727 on profit booking activities," he added.