Stock Picks of the Day on August 08, 2018

The India Cements Ltd: Buy| Close: Rs 121.90| Target: Rs 145 | Stop Loss: Rs 110 | Return: 14.85%

After marginal consolidation, the stock has given a breakout above Rs 118-119 levels on the daily scale with higher volumes. The daily momentum indicator, Relative Strength Index (RSI) reads at 62.45 levels, which is showing positive momentum.

The MACD is also trading above the zero line with positive crossover, suggesting consolidation phase is over in the stock. Traders can buy the stock in the range of Rs 120-122 with a stop loss below Rs 110 (closing) for a target of Rs 140.

Exide Industries Ltd: Buy| Close: Rs 285 | Target: Rs 320 | Stop loss: Rs 260 | Return: 12.28%

On the daily scale, the stock has been trading in an uptrend where price is making higher highs and higher lows with moderate volumes.

Moreover, the stock has been continuously trading above its 21-days moving average which is placed at Rs 271 levels.

The key technical indicators Relative strength index (RSI) showing positive momentum and MACD is trading above zero line with positive crossover whereas (+)

DI trading above (-) DI, which indicates limited downside in the stock.

Based on the above observations, traders can buy the stock in the range of Rs 283-286 with a stop loss below Rs 260 (closing) and a target of Rs 320

Muthoot Finance Ltd: Buy | Close: Rs 420.10| Target: Rs 449 | Stop loss: Rs 399 | Return: 6.88%

The stock has given a break-out above its downward trend line around Rs 417-418 levels on Monday with higher volumes on the daily chart.

A daily momentum indicator Relative Strength index (RSI) reading at 58.52 levels, making higher top and bottom whereas MACD is trading above zero line with positive crossover and OBV — On Balance Volume is showing an upward momentum, which indicates some fresh upmove expected in this stock.

Traders can buy the stock in the range of Rs 418-421 with a stop loss below Rs 399 (closing) for a target of Rs 449.