Stock picks of the day for August 27, 2018

DLF Ltd: Buy| LTP: Rs 212| Target: Rs 230| Stop Loss: Rs 200| Return 8.4%

Realty sector has underperformed the benchmark index by marking negative alpha since a couple of months but the recent move of the underline stock towards uncharted territory gives trigger to the realty sector.

In that space, the recent chart structure of DLF has managed to come out of the falling channel and on the lower time frame mainly on hourly, it is moving in a clear uptrend.

The recent throwback should capitalized as a buying opportunity. One can buy the DLF at a current market price with a stop loss placed below Rs 200 for the initial leg of up move towards Rs 230.

Persistent Systems Ltd: Buy| LTP: Rs 862| Target: Rs 930| Stop Loss: Rs 840| Return 10%

Midcap IT has shown strength in 2018 by outperforming the key benchmark index. In that space Persistent system has not participated in the spectacular rally as it is unfolded in a corrective pattern.

Now we are observing a renewed strength in the stock. One can buy this stock at the CMP by keeping a stop loss below Rs 840 for an initial leg of up move towards 930.