Stock picks of the day for August 23, 2018

Torrent Power Ltd: Buy | Close: 249.60 | Target: Rs 270 | Stop loss: Rs 235 | Return: 8.15%

After making a marginal consolidation, the stock has given a breakout above Rs 246-247 levels on Tuesday with higher volumes.

The daily Relative strength index (RSI) showing positive momentum and (+) DI trading above (-) DI whereas OBV –on balance volume showing upward momentum and MACD trading around zero line with positive crossover, which indicates that the stock has the potential to move higher.

Traders can buy the stock around current levels and add on dips around Rs 242-244 with a stop loss below Rs 235 (closing) for the target of Rs 270.

Wockhardt Ltd: Buy | Close: 644.40 | Target: Rs 683 | Stop loss: Rs 619 | Return: 5.99%

In daily scale, the stock has given breakout from symmetrical triangle pattern around 625-626 on Monday with moderate volumes.

Daily momentum indicator- Relative Strength index (RSI) reading at 63.15 level, showing positive momentum and MACD trading around zero line with positive crossover whereas OBV — On Balance Volume is showing an upward momentum and (+) DI trading above (-) DI, signaling strength in the stock.

Traders can buy the stock in the range of Rs 642-645 with a stop loss below Rs 619 (closing) for a target of Rs 683

Tata Motors: Buy | Close: 268.80 | Target Rs. 310 | Stop Loss Rs. 252 | Return 11.61%

After a decent correction, the stock has bounced from lower levels and has given a breakout above the downward sloping trendline around 267-268 levels on Monday with higher volumes in daily scale.

We saw a positive divergence in Relative Strength Index indicator in daily scale along with positive crossover in MACD whereas positive DI trading above negative DI, which indicates decent upside expected in coming trading sessions.

Traders can accumulate the stock in a range of Rs. 266-269 for the upside target of Rs. 310 and a stop loss below Rs. 252 (closing basis).