Buy Infosys, Ceat; sell HDFC, M&M Financial Services: Chandan Taparia

Chandan Taparia of Motilal Oswal Securities told CNBC-TV18, "First trade is a buy on Infosys, we are expecting positive momentum in most of the IT counter. Most of the IT stocks have seen positive price pattern with built up of long position including Tata Elxsi, Mindtree and Infosys. So recommending to go long on Infosys for an upside target towards recent high of Rs 1,218. One can buy with a stop loss of Rs 1,150."

"Second trade is buy on Ceat, we are expecting some bottom formation in the counter after the decline for last couple of weeks. It has seen some consolidation and expecting the positive stance led by short covering activity. One can buy with a stop loss of Rs 1,572 for an upside target of Rs 1,685."

"We have two sell trade as well. First is sell on HDFC Limited. As per the price pattern, it seems that NBFC and the banking stocks are likely to witness selling pressure. HDFC Limited has failed to surpass immediate hurdle of Rs 1,852 and given the lowest daily close in last 11 trading sessions, it is slipping below its 50-day exponential moving average and has potential to go towards Rs 1,760 kind of level."

"One can sell with a stop loss of Rs 1,834 and look for the downside decline of 2-3 percent in the counter."

"Second trade on the sell side is M&M Financial Services, the stock has recently formed a triangle pattern and also had to give the breakdown from its triangle, so more weakness could be seen. One can sell with a stop loss of Rs 443 and stock has potential to decline towards Rs 420 levels," he added.