Stock Picks Podcast for May 9, 2018: 3 stocks could give up to 12% return

Container Corporation of India Limited: BUY| Target: Rs 1,570| Stop loss: Rs 1,300| Return 12%

In the recent past, the stock has shown a “V” shape recovery from its lows and once again the price has regained the momentum above its 200-day exponential moving average on the daily interval.

Additionally, on the weekly interval, the stock has formed an Inverted Head and Shoulder pattern which gave a breakout above the neckline of the pattern formation along with hefty volumes.

Traders can accumulate the stock in a range of Rs 1,395-1,400 levels for the target of Rs 1,570 with a stop loss below Rs 1,300.

Parag Milk Foods Limited: Buy| Target: Rs 353| Stop loss: Rs 292| Return 12%

In the recent past, the stock has seen a sharp rise from Rs 250 levels and tested Rs 320 in a short span of time. Since then, the consolidation in prices has been witnessed as the stock is swinging in range of Rs 290-320 levels for more than three weeks.

This week, the stock has formed a bullish flag formation on the daily charts and has also given a break above the falling trend line of the formation.

Traders can accumulate the stock in a range of Rs 315-320 for the upside target of Rs 353 with a stop loss below Rs 292.
L&T Technology Services Limited: Buy| Target: Rs 1,520| Stop loss: Rs 1,250| Return 12%

The stock formed a double bottom formation at its 100-days exponential moving average on the daily charts and bounced sharply thereon to reclaim Rs 1,300 levels.

However, from the last two weeks, the consolidation in prices has led to a formation of a bullish flag pattern on the daily charts. A breakout from this pattern may lead to more upside in the coming days as secondary indicators like RSI and Stochastic also supporting the next up move.

Traders can buy the stock above Rs 1,350 levels for the upside target of Rs 1,520 with a stop loss below Rs 1,250.