Stock Picks Podcast on May 24, 2018: 3 stocks that could return up to 7%

United Breweries Ltd: Buy | Close: Rs 1,177.65 | Target: Rs 1,265 | Stop loss: Rs 1,126 | Return: 7.42%

On daily scales, UBL has taken support around its 20-DEMA and bounced back with higher volumes, which suggests that the stock has made a temporary bottom at around Rs 1,080 levels.

The Daily Relative strength index (RSI) and MACD are both in selling mode whereas (+) DI trading above (-) DI. Based on the above observations, positional traders can buy the stock at around current levels and add on dips around Rs 1,160-1,065 with a stop loss below Rs 1,126 (closing) for the target of Rs 1,265.

Divi's Laboratories Ltd: Sell | Close: 1093.65 | Target: Rs 1040 | Stop loss: Rs 1138 | Return: 5.45%

The stock has given a close below its 50 percent retracement level of March to May up move around Rs 1,124 on Tuesday with higher volumes, which indicates that the bias could remain bearish for the next few trading sessions.

The Daily Relative strength index (RSI) showing downward move and MACD continuously trading below the signal line suggests limited upside.

Based on the above observations, the stock is likely to move down in the near-term. A trader can sell the stock after some technical bounce back around Rs 1,100-1,110 with a stop loss above Rs 1,138 (closing basis) for a target of Rs 1,040

Tata Communications Ltd: Sell | Close: 610.75 | Target: Rs 598 | Stop loss: Rs 627 | Return: 3.40%

In the daily scale, the stock has taken resistance around its 20-DEMA and falling down with moderate volumes. The Daily Relative strength index (RSI) and MACD both are in selling mode whereas (-) DI just cross above (+) DI.

Based on the above observations the stock is likely to move down in the near term. Traders can sell the stock in a rally around Rs. 617-620 with a stop loss above Rs 627 (closing basis) for the target of Rs 596.