Stock picks of the day for September 04, 2018

Escorts: Sell| LTP: Rs 832| Target: Rs 777| Stop-Loss: Rs 880| Return 7%

The stock has violated the crucial support of its 200-DMA, placed at Rs 841 on the downside. Lower tops and lower bottoms are observed on the daily charts which is a bearish sign.

The stock formed a bearish head and shoulder pattern on the daily charts with a jump in volumes. Oscillators and indicators show the sign of a bearish trend.

Considering the technical evidence discussed above, we recommend selling the stock at CMP for the target of Rs 777 and keeping a stop loss at Rs 880 on a closing basis.

Engineers India: Buy| LTP: Rs 135.50| Target: Rs 148| Stop-Loss: Rs 127| Return 9%

The stock price appreciated more than 5 percent with significant volumes during Monday’s session. The stock price reached above its 10, 20 and 50-DMA, indicating a bullish trend reversal.

There is a long-term downward sloping trend line breakout on the weekly charts. There is a development of higher tops and higher bottoms on the daily closing basis.

Considering the technical evidence discussed above, we recommend buying the stock at CMP for the target of 148, keeping a stop loss below Rs 127 on a closing basis.

Wipro: Buy| LTP: Rs 309| Target Rs: 335 | Stop-Loss: Rs 293 | Return 8.4%

There is a bullish inverse head and shoulder pattern breakout on the daily charts. The stock price reached above its 50, 100 and 200-DMA, indicating bullish trend reversal for medium to long term.

Also, on the charts, 50-DMA has surpassed the 100-DMA line which indicates the short-term momentum buy signal.

Considering the technical evidence discussed above, we recommend buying the stock at CMP for the target of Rs 335 and keeping a stop loss below Rs 295 on a closing basis.