Buy Tata Elxsi, HDFC Bank; short Tata Steel: Chandan Taparia

Chandan Taparia of Motilal Oswal Securities told CNBC-TV18, "We have seen good run in most of the IT stocks including Mindtree, Hexaware Tech and KPIT Technologies. I am recommending to go long on Tata Elxsi. The stock has formed a small triangle pattern on the daily chart. It has been respecting its immediate support trend line and has surpassed immediate hurdle and trading above its supply trend line. So expecting a positive move in the counter. One can buy with a stop loss of Rs 1,020 and expect this stock to move towards Rs 1,088."

"Second trade is from the private banking space. We have seen surge in the Bank Nifty, but private banks are likely to be outperformer. I have selected to go long on HDFC Bank, this is a stable counter. Recently, it has taken support near to Rs 1,835 which is a horizontal support trend line. Longs are intact with Put writing activity. Some stability is visible in the counter, so recommending to go long with a stop loss of Rs 1,860 and expecting it to rally towards Rs 1,925."

"I am suggesting to go short or take the Put in Tata Steel. The stock is making lower top and lower bottom formation and in the recent bounce back move it failed to surpass immediate hurdle of Rs 635. So, there are potential to again retest Rs 600 in the lower zone. One can buy 600 Put keep the stop loss of Rs 5 and expect this Put to move towards Rs 17," he said.