Stock Picks of the Day on July 30, 2018

Phillips Carbon Black Ltd: Buy| LTP: Rs 234.85| Target: Rs 260 | Stop-loss: Rs. 220 | Return: 11%

After remaining on a sideways direction with negative biasness, Phillips Carbon registered a strong breakout from the crucial level of 20-days EMA placed at Rs 224 on the weekly chart.

Despite coming under pressure on the intraday basis, the scrip decisively managed to rebound at a new level, thus indicating a trend reversal on a short-term basis. The scrip also witnessed a significant volume breakout.

On the weekly price chart, the scrip registered a bullish candlestick pattern indicating a reversal in trend favoring upward momentum.

Further, the weekly RSI at 69 signaled a buying regime at the current level along with positive cues from MACD suggesting an upward shift.

The scrip is currently holding immediate resistance at Rs 291 and immediate support level at Rs 199. We have a BUY recommendation for Phillips Carbon which is currently trading at Rs. 234.80

Biocon Ltd: Buy | LTP: Rs 586| Target: Rs. 620 | Stop-loss: Rs. 553 | Return: 6%

Last week Biocon formed a reversal trend favoring upward momentum after consolidating on multiple price level of Rs 674-637 in the last six month.

Although it remained flat during an early trade of the week, it gained strong momentum towards the weekend to close above 200-days EMA levels seen at Rs 560. It also witnessed a substantial support from volume buildup in the same period.

The positive breakout on weekly basis aided the scrip to form a strong bullish candlestick pattern indicating a sustained trend at the current level.

The weekly RSI trend registered an upward momentum at 62 suggesting a buying regime along with MACD trading on a bullish momentum.

The scrip has a support at 521 levels and medium-term resistance level at Rs 637. We have a BUY recommendation for Biocon which is currently trading at Rs. 586.20

Cholamandalam Investment & Finance Co. Ltd: Sell | LTP: Rs 1463| Target: Rs. 1,395 | Stop-loss: Rs. 1,542 | Downside: 5%

Cholamandalam Investment mostly traded on a sideways direction favoring the negative biasness on its one-month price chart, and consolidated from Rs 1,608 levels towards a low of Rs 1,446.

Last week the scrip witnessed a setback as it slipped below crucial support of 200-days EMA level placed at Rs 1,476. Further, the volume growth remained to subdue to drop about 5 percent on an intraday basis.

The scrip trend indicated short-term consolidation which is seen with a formation of bearish candlestick pattern on its weekly price chart post-breach below important moving average level.

Further, the secondary momentum trend continued to indicate negative signal with RSI slipping below at 48 coupled with the bearish outlook from MACD trend.

The scrip is facing a resistance at 1600 levels and crucial support at Rs 1,274 levels. We have a SELL recommendation for Cholamandalam Investment which is currently trading at Rs. 1463.35