Stock Picks of the Day: RIL, Ashok Leyland among top 5 stocks which could give 8-28% return

Ashok Leyland: Buy| Buy range: Rs104-Rs 106| Target: Rs 135| Stop Loss: Rs 90| Return 28%

After giving a breakdown below Rs 123 levels, it slipped sharply towards its lower level but parity on the weekly time frame chart can provide a halt to the downtrend in the near-term.

RSI seems to be bottoming out in an oversold zone which raises the possibility of a bounce back on the higher side. Looking at the aforementioned rationale, one can buy this at the levels of Rs 104-106 with a stop loss of Rs 90 and an upside target of Rs 135.

Bank India: BUY | Buy Range: Rs 81-Rs 83|Target Rs 100| Stop Loss Rs 72| Upside 20%

The weekly chart of Bank of India reveals that it has formed a Dragon Fly Doji which is a trend reversal candlesticks pattern. At the same time, positive divergence in RSI on the weekly chart is also giving the possibility of a pullback on the higher side.

The lower time frame of the chart also gave a breakout through its double bottom pattern which has created a positive rhythm on the upside.

By looking at all these supportive technical factors, one can accumulate this stock around Rs 81-83 with the stop loss of Rs 72 and a target of Rs 90 and Rs 100 levels.

Escorts: BUY | Buy Range: Rs 820- Rs 830|Target Rs 950| Stop Loss Rs 749| Return 15%

After hitting a peak of Rs 1,017, the scrip corrected sharply. Point of polarity creates the opportunity of role reversal near the levels of Rs 820-830 where it can halt its southward movement and give a chance of maintaining the favorable risk-reward ratio.

Oversold RSI and stochastic near the levels of 30 can push the scrip on the higher side. Buying momentum will develop when it surpass above Rs 880 with decent volume after which it will accelerate towards Rs 930 marks.

To justify the support at the lower level, it has to sustain above its 200-DMA which comes around Rs 827 levels.

Kavery Seed: BUY | Buy Range: Rs 570-Rs 580|Target Rs 630| Stop Loss Rs 530| Return 9%

Kavery Seeds is trading with a higher high and higher low formation which is a sign of a positive trend. Recently, RSI which crossed 50 marks hints at a bullish tone.

At the same time, sustainability above Rs 580 –590 levels can give a spurt towards its unchartered territory near Rs 600 and Rs 630 marks. Its 200-DMA is around Rs 530 and it is trading above all the short-term moving averages which is a sign of strength.

We recommend initiating a long position in KSCL around Rs 570-580 levels by keeping a stop loss at Rs 530 and the upside targets are Rs 600 and Rs 630.

Reliance Industries: BUY | Buy Range: Rs 1110-Rs 1100|Target Rs 1200| Stop Loss Rs 1060| Return 8%

After giving break out from the rising channel which was observed on the weekly chart, RIL took a sharp move on the upside and consolidated near the peaks of Rs 1,100 where it formed a Flag pattern on the daily chart.

Sustainability above Rs 1,100 –1,110 levels can give a spurt towards its unchartered territory near the levels of Rs 1,170 and Rs 1,200 mark.

However, indicator and oscillator are lending its support to its price action. One can go long near the levels of 1100-1110 with the stop loss of Rs 1,060 for the target of Rs 1,170 and Rs 1,200 mark.