Stock picks of the day for December 20, 2018
Eicher Motors Ltd: Buy| LTP: Rs 23955.70 | Target: Rs 25200| Stop Loss: Rs 23290| Return 5%
The stock has seen to have found support at the rising trend line on the weekly chart; also, the correction halt at the support line was followed price appreciation in quick sessions suggesting the strength of the support line.
In addition, a bullish engulfing pattern is visible on the weekly chart. The price has moved above the 50-EMA on the daily chart. Recently, the price has moved above the 50% retracement of the previous fall from 25350 to recent low 21800.
Traders can accumulate the stock in the range of 23900–24000 for the target of 25200 and a stop loss below 23290.
Dixon Technologies Ltd: Buy| LTP: Rs 2121.65 | Target: Rs 2340 | Stop Loss: Rs 2037| Return 10%
On the daily chart, the stock has given a breakout above the falling trend line which suggests a reversal in the trend. On the weekly chart, the stock formed a ‘Morning Star’ kind of candlestick pattern which suggests a possibility of a larger bullish reversal in the stock.
In addition, the daily RSI is in a bullish divergence with the price which suggests momentum is likely to change to positive. Traders can accumulate the stock in the range of 2115-2130 for the target of 2340 and a stop loss below 2037.
JSW Steel: Buy| LTP: Rs. 311| Target Rs 336| Stop Loss: Rs.298| Return 8%
The stock has given a falling wedge breakout on the daily frame. In addition, for an early indication, we find a higher bottom on the daily chart.
On the weekly chart, a ‘Morning Doji Star’ formation is visible which suggests a strong reversal on the bullish side. The daily strength indicator, RSI (14) has come out from the oversold zone after a prolonged stay.
Traders can accumulate the stock in the range of 308-313 for the target of 336 and a stop loss below 298.