Stock Picks of the Day: These 3 midcap ideas may offer 6-8%
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Tech Mahindra: Buy| LTP: Rs 696| Target: Rs 745 | Stop-loss: Rs 670 | Return 7%
Tech Mahindra is the best performing stock in the Nifty in the calendar year 2018. It has rallied by about 38 percent so far in the year.
After consolidating in the range of Rs 660-720 since the last couple of months, the stock price is on the verge of giving breakout above Symmetrical Triangle by closing above Rs 720 odd levels.
The stock price is currently trading above its 5, 20 and 200-DMA indicating medium-to-long term trend is bullish. Technology as a sector is doing well and we believe that the trend is going to continue for the months to come.
Therefore, we recommend buying Tech Mahindra for the upside target of Rs 745 and keep a stop loss below Rs 670.
L&T Finance Ltd: Sell| LTP: Rs 157| Target: Rs 145 | Stop-loss Rs 166 | Return 8%
Since the month of October last year, the stock has been witnessing selling pressure at a higher level and it eventually fell by 27 percent from the all-time high level.
It has also given a breakdown on the daily chart by closing below the strong support placed at Rs 160 odd levels. The stock price is currently trading below its 5, 20 and 200-DMA indicating that the short to medium term trend is negative.
Oscillators and momentum indicators are also showing weakness on the weekly and monthly charts. Therefore, we recommend selling L&T Finance for the target of Rs 145, and keep a stop loss above Rs 166.
Ashok Leyland Ltd: Sell| LTP: Rs 132| Target Rs 120 | Stop-loss Rs 140 | Return 6%
After making an all-time high level of Rs 168 in May, Ashok Leyland witnessed a heavy selling pressure with the rise in Volumes where it fell by more than 20 percent in just 33 trading sessions.
The stock price also closed below its 200-Day SMA on Monday for the first time since May 2017 indicating weakness in the stock. Oscillators and momentum Indicators like RSI and MACD is showing weakness on daily charts.
Therefore, we recommend selling Ashok Leyland at a current market price of Rs 132 and sell more on any rise around the Rs.136 level for the downside target of Rs.120. A stop loss can be placed above Rs 140 level.