Go long in BOI, REC: Chandan Taparia

Chandan Taparia of Anand Rathi told CNBC-TV18, "We have seen strong recovery in the market. We are witnessing fresh buying interest at every decline. Put Call ratio has moved up in the series and near to the series high which is indicating that Put writers are quite active and stock specific action may continue in the market. We are expecting Nifty to hit new high before the Budget and we are expecting the same expectation in the stocks as well. We are recommending to go long in selective stock by looking at their price pattern in the derivatives data."

"Bharat Heavy Electricals (BHEL) recently took support near to the Rs 250 zone and also made an attractive narrow range price pattern. We are witnessing some short covering activity and this momentum may take stock to Rs 282 and higher levels. So, we are recommending to go long on BHEL with stop loss of Rs 261 for higher targets," he said.

"One can buy Bank of India. All the PSU banks have seen sharp fall in last couple of trading sessions but now witnessing some support based buying and shorts are also covering in those. All these beaten down counters are also finding some Put writing support at the lower strike. In the middle of October it took support near to the lower band of the territory near to Rs 225 zone and the same support is now working for the stock. So, we are recommending to go long in the Bank of India with a stop loss of Rs 232 for the upside target of Rs 255."

He further added, "Rural Electrification Corporation is in a consolidation phase from last three months. On the downside it takes support near to the Rs 307 and moves to Rs 350. The stock is turning from the lower band of the trading range and also witnessing delivery based buying activity. So, we are recommending to go long in REC as well with a stop loss of Rs 312 for upside target of Rs 340."