Stock picks of the day for September 12, 2018

Natco Pharma: BUY | Close: 829.75 | Target: Rs 900 | Stop loss: Rs 795 | Return: 8.47%

After making long consolidation, the stock has given a breakout above Rs 824-825 levels on Tuesday with a strong price momentum along with higher volumes.

The daily Relative Strength Index (RSI) is trading at overbought zone but still showing positive momentum and MACD is trading around zero line with positive crossover whereas (+) DI trading above (-) DI, which indicates that the stock has the potential to move higher.

Based on observations, traders can buy the stock in the range of Rs 825-830 with a stop loss below Rs 795 (closing) for the target of Rs 900.

Chennai Petro: Sell | Close: 281.60 | Target: Rs 264 & 255| Stop loss: Rs 301 | Return: 7.37%

On the daily scale, the stock has given a breakdown from symmetrical triangle pattern around 289-290 levels on Tuesday with higher volumes, which suggest a bearish run for the stock price in coming sessions.

The daily Relative strength index (RSI) is showing negative momentum and MACD is trading around zero line with negative cross whereas (-) DI continuously trading above (+) DI.

Based on the above observations, traders can sell the stock after some technical bounce back around Rs 285-288 with a stop loss above Rs 301 (closing) for a target of Rs 264 & 255

Automotive Axles: Buy | Close: 1,432.60 | Target: Rs 1,800 & 2,050 | Stop loss: Rs 1,235 | Return: 25.65%

On the weekly scale, the stock has given a close above its 38.2 percent retracement levels of (28th January to 3rd June 2018 down move) and trying to make a rounding bottom formation with moderate volumes which suggest a bullish run and we may see a gradual upward movement in the stock price.

The momentum indicators are in bullish mode on the weekly scale whereas (+) DI trading above (-) DI, signaling strength in the stock. Positional traders can buy the stock in the range of Rs 1,425-1,435 with a stop loss below Rs 1,235 (closing) for a target of Rs 1,800 & 2,050.