Stock picks of the day for August 21, 2018
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Tech Mahindra Ltd: Buy| LTP: Rs 688 | Target: Rs 730 | Stop-Loss: Rs 665 | Return 6%
Tech Mahindra has broken out from the downward sloping trendline, adjoining the high of 28-June, 01-August and 14-August 2018 on the daily chart by closing above the Rs 675 levels with higher volumes.
The short-term moving averages are trading above the long-term moving averages, indicating a bullish trend. The momentum indicators and Oscillators are indicating strength in the stock for the short to medium-term.
Technology as a sector is doing well and looking good for the short-term. Therefore, we recommend buying Tech Mahindra for the upside target of Rs 730 and keeping a stop loss placed below Rs 665.
RBL Bank: Buy| LTP: Rs 591 | Target: Rs 640 | Stop-Loss: Rs 565 | Return 8%
RBL Bank has given a Symmetrical Triangle breakout on the daily charts on Monday, indicating a continuation of an uptrend. The stock price has also broken out from the downward sloping trend line, adjoining previous two weekly tops.
Volumes have been rising along with the price rise for the last four sessions. The stock price has been trading above 20, 50,100 and 200-DMA indicating the stock is in a strong uptrend.
Indicators like MACD and ADX have turned bullish on the daily and weekly charts. Therefore, we recommend buying RBL Bank for the upside target of 640, and keeping a stop loss below at Rs 565.
Amara Raja Batteries: Buy| LTP: Rs 892| Target: Rs 980 | Stop-Loss: Rs 845 | Return 10%
Amara Raja Batteries has broken out from the downward sloping trendline on the weekly chart, adjoining the high of the week ending 09-September 2016, 07-October 2016 and 11-May 2018 by closing above the 875 levels with higher volumes.
The stock price has also given a breakout on the daily chart on Monday by closing above the previous resistance level of 887 to close at 52 week high.
The momentum indicators and Oscillators like RSI and MACD are showing strength in the stock for the short to medium-term. Therefore, we recommend buying Amara Raja Batteries for the upside target of 980 and keeping a stop loss placed below Rs 845.