Stock Picks Podcast on May 30, 2018: 3 stocks that could return 7-12%
Kajaria Ceramics Ltd: Buy | Close: Rs 572 | Target: Rs 621 | Stop loss: Rs 526 | Return: 10.89%
In the weekly scale, the stock has taken a support around its 200-DMA and bounced back with moderate volumes, which suggest that the stock has made a temporary bottom around Rs 500 levels.
The key technical indicators Relative strength index (RSI) and MACD has turned upward which is signaling limited downside in the stock whereas OBV — On Balance Volume is showing an upward momentum.
Based on the above observations positional trader can buy the stock around current levels and add on dips around Rs 555-560 with a stop loss below Rs 526 (closing) for a target of Rs 600.
The Indian Hotels Company Ltd: Buy | Close: 146.30 | Target: Rs 168 | Stop loss: Rs 135 | Return: 11.72%
After making a short consolidation, the stock has given a breakout above Rs 141-142 levels on Monday with higher volumes.
The Daily Relative strength index (RSI) showing upward momentum and MACD is trading with positive crossover whereas (+) DI trading above (-) DI, which indicates that the stock has the potential to move higher.
Positional traders can buy the stock in dips at around Rs 142-145 with a stop loss below Rs 135 (closing) for the target of Rs 162.
Dabur India Ltd: BUY | Close: 385.55 | Target: Rs 408 | Stop loss: Rs 364 | Return: 7.37%
On daily scales, Dabur has taken a support around on its 23.6 percent retracement level of 23rd March to 18th May up move and bounced back with moderate volumes, which suggests that the stock has made a temporary bottom at around Rs 365 levels.
The Daily Relative strength index (RSI) showing upward move and MACD is trading above zero line and trying to crossover its signal line whereas (+) DI continuously trading above (-) DI, which indicates that the bias could remain bullish for the next few trading sessions.
Based on the above observations, Traders can buy the stock in dips around Rs 377-380 with a stop loss below Rs 364 (closing) for a target of Rs 408.