Stock Picks of the Day: Top 3 stocks that could return 6-8%

Sun Pharma: Buy| LTP: Rs 563 | Target: Rs 600 | Stop-loss Rs 545 | Return 7%

Pharma sector has remained in focus throughout in June and many stocks from the sector have formed trend reversal patterns on the charts.

Sun Pharma remained the leader from the space with price appreciation during the month with rising volumes. For the last couple of weeks, the stock went into a consolidation, which could be a small pause after upward swing seen during the previous month.

The recent consolidation should be utilized to accumulate the stock. Oscillator setup has also turned bullish. We recommend buying Sun Pharma for the upside target of Rs 600 and keep a stop loss placed at Rs 545.

Tata Elxsi Ltd: Buy| LTP: Rs 1,344 | Target: Rs 1,425 | Stop-loss: Rs 1,300 | Return 6%

The appreciation of the dollar against rupee has been in favor of the IT sector. Rupee registered a new all-time low against the Dollar in the recent past, which could augur well for the IT sector in the coming times.

The midcap IT Company, Tata Elxsi broke out from the crucial resistance of Rs 1,200 on the long-term monthly chart during April 2018.

In the recent correction of the market, the stock remained resilient and continued to extend gains towards fresh new highs.

The stock price has been trading above all important moving averages. The oscillator setup has also been bullish for the counter. We recommend buying Tata Elxsi for the upside target of Rs 1,425, and a stop loss placed below Rs 1,300.

Shriram Transport Finance Ltd: Sell| LTP: Rs 1,286 | Target: Rs 1,180 | Stop-loss: Rs 1,365 | Return 8%

For the last couple of weeks, NBFC sector has remained under pressure and many of stocks from the space have turned weak on the charts.

Shriram Transport Finance has recently breached the crucial support of its 200-DMA, currently placed at Rs 1,365. The stock has been forming lower tops and lower bottoms on the daily charts. Short term moving averages have crossed long-term moving averages on the downside, indicating weakness in the short term trend.

We recommend selling Shriram Transport Finance for the downside target of Rs 1,180 and keep a stop loss placed above Rs 1,365.