Buy HPCL; sell JP Associates: Chandan Taparia

Chandan Taparia of Anand Rathi Securities told CNBC-TV18, "We have positive view on Hindustan Petroleum Corporation (HPCL) and oil marketing companies by looking at the overall negative trend of the crude prices. Overall trend is negative and Hindustan Petroleum is near to the life time high territory and on the verge of price breakout. We have seen short covering activity at the life time high territory which indicates that now the stock can surpass immediate high of Rs 760 and move towards Rs 785. So we are suggesting to buy Hindustan Petroleum with a stop loss of Rs 633 for the upside target of Rs 685."

"We have a sell idea on the Jaiprakash Associates. We are witnessing some Call writing and built up of short positions in all the cement counters. JP Associates have seen a sustained Call writing at 30 and the 27.50 strike which is continuously dragging it to the lower levels. Overall trend of the stock is negative and after the small bounce back it is all set to decline and go towards Rs 23-22 levels. The stock is continuously falling from last five trading sessions and adding built up of short positions. So we are suggesting to sell JP Associates on a bounce back move with a stop loss of Rs 29 for the downside and the target of Rs 23," he said.