Stock Picks Podcast for May 11, 2018: 3 stocks could give up to 12% return

HCL Technologies: Buy around Rs 925-930| Target: Rs 1,020| Stop loss: Rs 895| Return 9.6%

After its poor Q4 show, HCL Tech saw a sharp selloff and in just two trading session, the stock shed almost 10 percent and made low of Rs 900 last week.

Since then, the stock is trading in a narrow band of Rs 900-935 levels with an increase in delivery volumes. HCL Tech has multiple supports placed in the range of Rs 890-910 and is forming a short-term base around its support levels.

Its 200-DMA (days moving average) is placed around Rs 910 which will act as a strong support. From current levels, the risk-to-reward ratio is in favor of buyers and we recommend short-term traders to initiate long positions with a target of Rs 1,020 and a stop loss placed below Rs 895.

ACC: Sell around Rs 1,500-1,510| Target: Rs 1,400| Stop loss: Rs 1,555| Return 6%

For the last couple of weeks, ACC is in a downtrend and any pullback rally in the stock is used to exit from long positions and create fresh shorts.

On the weekly charts, the stock has made a double top pattern around Rs 1,860 levels and a breakdown from the said pattern came below Rs 1,600 levels.

In Thursday’s session, ACC closed below its short-term support level of Rs 1,500 and closed below that.

We expect the downtrend in the counter will continue and any pullback towards Rs 1,510-1,520 can be used to initiate short positions with a target of Rs 1,400 and a stop loss placed above Rs 1,555.

NMDC: Sell below Rs 116| Target: Rs 102| Stop loss: Rs 121| Return 12%

After giving a breakdown from its long-term trendline support of Rs 124, the stock has been hovering in a narrow band of Rs 116-125 for the last 7 weeks.

On the higher side, NMDC has a strong resistance around Rs 126 zone and heavy selling pressure is seen around those levels.

In Thursday’s trade, the stock closed near Rs 116 but added huge short positions in derivatives segment indicating more selloff in the counter.

Our short-term view remains negative on NMDC and traders can short below Rs 116 with a target of Rs 102 and a stop loss of Rs 121.