Buy L&T Finance, REC; advise bull call spread in RIL: Taparia

Chandan Taparia of Anand Rathi Securities told CNBC-TV18, "What we feel is that stock specific action is likely to continue in the market. As sustained buying is being witnessed from the foreign institutional investors (FIIs) by more than Rs 15,000 crore in last 21-22 trading sessions. So, talking about the stocks, first trade is buy on Larsen & Toubro Finance Holdings. This stock has given a fresh positive breakout and formed a positive pole and flag pattern. It has surpassed immediate hurdle of Rs 88 and now all set to move towards Rs 98-99 kind of zone. So, suggesting to buy with a stop loss of Rs 86 for the upside target towards Rs 98-99 kind of level.""Second trade is on the option front on Rural Electrification Corporation (REC). The stock is moving up fast from last five weeks, added open interest on long side and also made the immediate multiple supports near to Rs 211-212 level. It has surpassed the hurdle of Rs 222 to Rs 223 levels and now set to move towards Rs 230-235 levels. So, traders can trade with 225 Call by keeping the stop loss of Rs 3.50 for an upside move towards Rs 13," he said."Now we are turning positive on Reliance Industries. The stock has given the positive price close on last trading session and given the higher daily close so far in last couple of weeks. It has surpassed the immediate hurdle of Rs 1,035 and above Rs 1,040 the stock can see the fresh leg of rally towards Rs 1,070-1,080 level. If Nifty has to move then I think now Reliance may support the broader market. However, the stock has failed to surpass the hurdle. So, suggesting to be with conservative strategy. Buy with Bull Call spread - buy 1,030 Call with the premium of Rs 21 and sell 1,070 Call. In the entire strategy the risk is only 14 points. As per the expectation, if the stock manages to move towards Rs 1,070 then one can get the profit of 16 points, so there is 1:2 risk reward ratio on the stock."Disclosure: Reliance Industries has acquired management control of Network18, which owns TV18 Broadcast and moneycontrol.com."Last trade is on the positive side which is Hindalco Industries. We are turning positive from last couple of trading sessions. Recently, it surpassed the immediate hurdle of Rs 141 and is also witnessing fresh Put writing at a lower strike. The stock has seen this strong rally with volumes in the open interest activity and added open interest by more than 12-15 percent. So, we may see positive move towards Rs 155-158 levels. One can buy 150 Call near to Rs 4-4.50, place the stop loss near to Rs 2 and this call can move towards Rs 10.""We have seen negative price pattern on Godrej Consumer Products. The stock has seen the built up on the short side and also broken the immediate support of Rs 1,580 level. It is all set to start the fresh breakdown, so this stock can fall towards Rs 1,500. One can sell with a stop loss of Rs 1,620.""Next sell is on Bharti Infratel. The stock has given the breakdown after the consolidation of last four to five trading sessions. It has seen the strong rally in the last series but now the momentum seems to fizzle out. Fresh build up of short positions and the breaking of the weekly support is also giving the negative sense on this stock. So, one can sell with a stop loss of Rs 392 for the expectation of downside target towards Rs 360 levels."