Buy ITC, Petronet LNG, Cipla; sell BPCL: Chandan Taparia

Chandan Taparia of Motilal Oswal Securities told CNBC-TV18, "We would like to be with stock specific activities. First trade is buy on ITC. We have seen a built up of long position in most of the FMCG counter and ITC is likely to perform. It has given the highest weekly close and all set to head towards its new high territory. So, recommending to buy with a stop loss of Rs 279 for upside target of Rs 300 level. It is also forming a positive price pattern which is called a flag pattern with Put writing at 280 strike. So that is also likely to support the sentiment of the counter."

"Second trade is buy on Petronet LNG. This stock has holding the gains and slowly and steadily it is moving on higher side. In last trading also it has seen strong momentum. However, it witnessed some decline from higher levels and the decline is giving the fresh opportunity. Overall open interest is down by 4 percent with positive price action which indicates that now shorts are covering. So, recommending to go long with a stop loss of Rs 439 for the new high target of Rs 470," he said.

"Apart from that, I have a positive view on Cipla. I think the pharmaceutical index is now finding some support at lower levels. However, looking for a bounce back move. So, recommending to go long on Cipla with a stop loss of Rs 558 for upside target of Rs 582."

"The last trade is on the sell on the oil marketing companies. We have seen toping formation on the short-term basis in selective oil marketing companies as well as in NBFC counters where built up of shorts added in last two trading sessions. So, recommending to sell BPCL with a stop loss of Rs 716 with a downside target of Rs 675," he added.