Stock Picks Podcast on May 18, 2018: 3 stocks that could return up to 10%

Bajaj Finance Ltd: Buy| Target: Rs 2,250| Stop loss: Rs 1,975| Returns 9%

The stock has been consolidating for the past eight months and has finally broken out from its multi-month channel pattern on the weekly chart. The breakout has also been accompanied with a smart uptick in traded volumes which is a good sign.

The 21-DEMA has proved to be a strong support area whenever stock was under pressure. We expect Bajaj Finance to make an attempt to rally towards its potential target of Rs 2,250 in the medium term.

Colgate Palmolive Ltd: BUy| Target: Rs 1,276| Stop loss: Rs 1,138| Returns 9%

The stock has broken out from the Cup and Handle pattern seen on the weekly charts and has also sustained above the same for the past two weeks indicating strength in the breakout.

Rising volumes and Relative strength index (RSI) are all indicating that the current momentum is likely to extend further.

We expect the stock to surge higher towards its potential target of Rs 1,276 levels in the medium term. Traders can put a stop loss below Rs 1,138

Oil India: Buy| Target: Rs 266| Stop loss: Rs 230| Returns 10%

The stock has been consolidating for the past 18 weeks and has finally broken out from the rising wedge pattern on the weekly charts.

The breakout has been accompanied with a smart uptick in traded volumes. The relative strength index also indicates that the current momentum is likely to extend further.

We expect the stock to surge higher towards its potential target of Rs 266 levels in the medium term which translates into a 10 percent returns.

Disclaimer: The author is Senior Technical Analyst, IIFL. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.