Buy or sell: Top stock picks by Prakash Gaba, Abhishek Mondal for May 16

The Nifty50 gave up all gains and closed marginally in the red on Tuesday as uncertainty around who will form the government in Karnataka made investors wary. The index formed an ‘Inverted Hammer’ or a Shooting Star kind of formation on the daily charts.

A 'Shooting Star' pattern is formed when the index comes under selling pressure as traders start booking profits at higher levels. This pattern is usually formed in an uptrend and is treated as a reversal pattern, but it would require confirmation before we can conclude that the trend will get reversed in near future.

In exact 'Shooting Star' formation, the distance between the lowest price for the day and the closing price must be very small or nonexistent. However, in Tuesday's session, Nifty50 opened at 10,812.60 and slipped to an intraday low of 10,781.40. It closed 4.75 points lower at 10,801.85.

Here are the list of top stocks to buy or sell which are good bets today:

Technical Analyst, Prakash Gaba:

Sell Reliance Communications with a stoploss of Rs 385 and target of Rs 365

Sell Balrampur Chini Mills with a stoploss of Rs 63 and target of Rs 58

Abhishek Mondal of Guiness Securities

Buy Bharat Petroleum Corporation with a stoploss of Rs 387 and target of Rs 438

Buy NMDC with a stoploss of Rs 107 and target of Rs 124