Stock Picks of the Day on August 02, 2018
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Quess Corp Ltd: Buy | CMP: Rs 1,015.10 | Target Rs 1,094 | Stop Loss Rs 1,049 | Return 7.7%
The stock has formed a bullish Cypher pattern on the daily chart which suggests a possibility of strong recovery in the stock price over the short term.
In addition, a bullish ‘Harami’ candlestick pattern has formed which may propel a rally in the stock. A divergence in the daily RSI also indicates positive momentum in the near future.
Traders can accumulate the stock in the range of 1010-1020 for the target of 1094 with a stop loss below 1049.
Kalpataru Power Ltd: Buy | CMP: Rs 385.50 | Target Rs 424 | Stop Loss Rs 366 | Return 11%
The price has just managed to move above its consolidation pattern which suggests growing optimism in the stock.
After few failures attempt the stock has closed above its 21 EMA for the first time. The momentum oscillator, RSI on the daily chart has formed a double bottom and moved up to give a trend line breakout.
Traders can accumulate the stock in the range of 380-390 for the target of 424 with a stop loss below 366.
Dr Reddy’s Lab Ltd: BUY | CMP: Rs 2,175.70 | Target Rs. 2,310 | Stop Loss Rs 2,097 | Return 6%
The stock has found support at the 200-Double Exponential Moving Average (DEMA) and moved up to some extent; in addition, price has moved above its previous “inflection point” on closing basis.
In the recent move, the stock has moved above its 38.20% Fibonacci Retracement level of the previous fall from Rs 2,387 to Rs 2,025.
On the weekly chart, a positive divergence is visible in the RSI (14). Traders can accumulate the stock in the range of Rs 2,165-2,185 for the target of Rs 2,310 with a stop loss below Rs 2,097.
ITC Ltd: Buy | CMP: Rs 301.60 | Target Rs 337 | Stop Loss Rs 284 | Return 12%
The stock price has given a rectangle breakout on the weekly chart which suggests growing optimism in the stock.
In addition, the price has moved above its inflection point on the daily chart which again points for a bullish shift in price trend. Weekly RSI (14) is in an ascending mode.
In addition, daily MACD is in Buy mode. Traders can accumulate the stock in the range of 298-303 for the target of 337 with a stop loss below 284.