Stock Picks Podcast for April 25, 2018: top 3 stocks which could give up to 12% return

AU Small Finance Bank Limited: BUY| Target Rs775| Stop Loss Rs640| Return 12%

The smart recovery has been seen in prices in recent weeks. The stock held back above its 200 days exponential moving average (DEMA) on the daily interval. Since past few weeks stock has been seen consolidating in range of Rs 680-650.

However, in Tuesday’s session, a fresh breakout in prices along with hefty volumes pushed the stock to surpass its recent resistance levels.

Additionally, the stock has also given a breakout above the Cup and Handle formation which can be visible on a daily interval. So, traders can accumulate the stock in a range of Rs 695-690 levels for the target of Rs 775 with a stop loss below Rs 640.

Praj Industries Limited: BUY| Target Rs107| Stop Loss Rs89| Return 12%

On the daily charts stock has formed double bottom formation around 80 levels and bounce back sharply to once again regain the momentum above its 200 days exponential moving average.

In addition, the stock has also formed inverted head and shoulder formation on daily charts and is on verge of a breakout above its neckline.

The positive divergence on secondary indicators are supporting the up move in prices along with multiple supports at its short and long-term moving averages. The traders can accumulate the stock in a range of Rs 95-98 for the upside target of Rs 107 with a stop loss below Rs 89.

SBI Life Insurance Company Limited: BUY| Target Rs822| Stop Loss Rs695| Return 11%

Ever since the stock has listed on the stock exchange it is trading in a broader range of Rs 625-725. The consolidation has been seen for more than six months.

However, in Tuesday’s session finally, the bulls took control over the prices as the stock has witnessed a consolidation breakout above the Rs 720 levels with hefty volumes.

Moreover, on the daily interval stock has also given a breakout above the ascending formation which is generally traded as a bullish pattern.

The traders can accumulate the stock in a range of Rs 746-740 levels for the upside target of Rs 822 with a stop loss below Rs 695.