Buy GAIL India, target Rs 380: Chandan Taparia

Chandan Taparia, Derivative & Technical Analyst at Anand Rathi Securities told CNBC-TV18, "We have a positive view on GAIL India and Petronet LNG. These stocks are holding well even after sharp decline in the market. Earlier, in the last series, GAIL has seen a strong recovery from Rs 275 to Rs 375 zone and those longs are still intact. In the last series, it has taken multiple support near to Rs 335 zone and continuously headed towards Rs 378 kind of levels. Although we have seen a small decline and profit booking, that is the opportunity to again buy the counter.""Longs are heading to take it to higher levels. We have seen 81 percent roll-overs. In the last series we have also seen some short covering that also indicates that short covering might take it to higher levels. So, overall sense is positive. We are recommending to buy with a stop loss of Rs 357 for the target of Rs 380 kind of levels," he said."Ashok Leyland has been consolidating in a range from the last our series, but interestingly, it was continuously holding up Rs 82-83 levels. It has shifted support from Rs 83 to Rs 88 levels and given a breakout from a small consolidation phase above Rs 90. We are expecting this stock to start the next leg of rally. We are recommending to go for bull call spread.""Buy 92.50 Call, sell 97.50 Call. In the entire strategy, risk is around Rs 2 and if this stock moves towards Rs 97-98, then we will get profit of around Rs 3. So, 1:1.5 risk reward ratio, we are expecting Ashok Leyland to head towards Rs 97-98 levels while expecting it hold a support of Rs 87.50-88 zone."