Stock Picks of the Day on July 26, 2018

Mahanagar Gas Ltd: Buy| CMP: Rs. 876.75| Target Rs 972|Stop Loss Rs.829| Return 10%

On the daily frame, the stock has produced a symmetrical triangle breakout, which is the result of growing optimism in stock.

The recent up move has set the price above 50 EMA; in addition, the price has moved above 38.20% retracement level of the previous fall from 1028 to 772.

The weekly and daily momentum indicators are also in favour of further upside in the stock.

Traders can accumulate the stock in the range of Rs 870-880 for the target of Rs 972 with a stop loss below Rs 829.

Pidilite Industries Ltd: Buy| CMP: Rs. 1117.65 | Target Rs 1207| Stop Loss Rs.1069| Return 8%

The stock was consolidating within a range of 80 points on the daily chart for several days, which finally resulted in a penetration above the upper band of the consolidation pattern.

Decent volume is visible on the day of the breakout which adds to the bullish perception in the stock. This type of breakout suggests after days of indecisiveness there is a spurt in bullishness.

Bullish crossover in the momentum indicators also suggests a rally in the short term. Traders can accumulate the stock in the range of Rs 1110-1125 for the target of Rs 1207 and a stop loss below Rs 1,069.

Century Textile Ltd: Buy| CMP: Rs.904.85 | Target Rs 1,000| Stop Loss Rs.859| Return 10%

The stock has completed a bullish AB=CD pattern on the daily chart which suggests a possibility of the reversal in the stock trend.

On the daily chart, the stock price has moved above its recent consolidation pattern. Momentum oscillator, RSI (14) on the daily chart is in positive divergence which suggests the positive shift is expected in the stock in the near term to short term.

Traders can accumulate the stock in the range of Rs 900-910 for the target of Rs 1,000 with a stop loss below Rs 859.

UBL Ltd: Buy| CMP: Rs.1,110.55 | Target Rs 1,220|Stop Loss: Rs.1,054|Return 10%

The stock has in a higher top higher bottom formation on the weekly chart. In its recent move price has found support around the 50 EMA.

On the daily chart, the price has formed a bullish Anti Butterfly Harmonic pattern which suggests a strong pullback in the stock over the short term. Momentum oscillator, RSI (14) on the daily chart has entered in a positive crossover after recent price move.

Traders can accumulate the stock in the range of Rs 1,100-1,115 for the target of Rs 1,220 with a stop loss below Rs 1,054.

Kajaria Ceramics Ltd: BUY| CMP: Rs.444.30 | Target RS.500|Stop Loss Rs.422|Return 12%

The stock has moved above the last three days consolidation high. Moreover, the stock has completed a bullish AB=CD pattern on the daily chart which suggests a reversal in the price trend in the stock.

Momentum oscillator, RSI (14) on the daily chart has formed a double bottom and moved out of the oversold zone which suggests momentum to remain positive in the short term.

Traders can accumulate the stock in the range of Rs 440-450 for the target of Rs 500 with a stop loss below Rs 422.

Disclaimer: The author is a Technical Research Analyst at Bonanza Portfolio Ltd. The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.