Stock Picks of the Day: 3 buys that could return 7-8%

UBL: Buy| LTP: Rs 1,284| Target: Rs 1,370 | Stop-loss: Rs 1230 | Return 7%

The stock price has recently registered a new all-time and 52-week high at Rs 1,310. For the last 5 session’s price has been consolidating in the range of Rs 1,256-1,290 on a closing basis.

The primary trend of the stock has been bullish with higher tops and higher bottoms on the daily and weekly charts. On the weekly charts, the stock has also given breakout from bullish inverse head and shoulder, indicating a continuation of an uptrend.

The stock price is currently placed above all important moving average parameters. We recommend buying UBL for the upside target of Rs 1,370, and a stop loss below Rs 1,230.

Tata Elxsi Ltd: Buy| LTP: Rs 1,296| Target: Rs 1,390 | Stop loss: Rs 1,240 | Return 7%

The IT Sector has remained a major contributor to holding the recent market strength. The Midcap IT stock, Tata Elxsi has recently registered a new all-time high with decent volumes.

The stock broke out from the ascending triangle on the daily chart, indicating the continuation of the primary uptrend.

Oscillators have been holding their bullish setup on the weekly and monthly charts. We recommend buying Tata Elxsi for the upside target of Rs 1,390, and a stop loss below Rs 1,240.

Jyothy Lab: Buy| LTP: Rs 464 | Target: Rs 502| Stop loss: Rs 445 | Return 8%

In the month of June 2016, the stock broke out from the long-term multi-month consolidation and registered an all-time high at Rs 471. Thereafter stock witnessed healthy correction of 16% from Rs 471 to Rs 396 in the next 2 weeks.

On 6th June 2018, the stock found support at Rs 396 and bounced sharply to surpass previous top of Rs 471 and registered a new all-time high placed at Rs 487 on 12th June 2018.

FMCG sector has been outperforming and Jyothi lab is also likely to extend the gains for investors. We recommend buying Jyothi Lab for the target of Rs 502 and keep a stop loss below Rs 445.