Stock picks of the day for September 19, 2018
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Divis Laboratories Ltd: Buy| LTP: Rs 1379.80 | Target: Rs 1490 | Stop loss: Rs 1300 | Return: 7.99%
On the daily scale, the stock has given a breakout from its Flag pattern above Rs 1330-1332 levels on Monday with higher volumes. The Relative strength index (RSI) is showing positive momentum and MACD is trading above zero line with a positive crossover which indicates limited downside for the stock.
Based on the above observations traders can buy the stock around current levels and further add on dips around Rs 1340-1345 with a stop loss below Rs 1300 (closing) for the target of Rs 1490.
Biocon Ltd: Buy| LTP: Rs 677.10 | Target: Rs 740 | Stop loss: Rs 630 | Return: 9.29%
After making a marginal consolidation, the stock has given a breakout above Rs 675-676 levels on Tuesday with higher volumes.
The daily Relative strength index (RSI) showing positive momentum and (+) DI trading above (-) DI whereas MACD trading above zero line with positive crossover, which indicates that the stock has the potential to move higher.
Traders can buy the stock in the range of Rs 675-678 with a stop loss below Rs 630 (closing) for the target of Rs 740.
Ceat Ltd: Sell| LTP: Rs 1349.20 | Target: Rs 1295 & 1280 | Stop loss: Rs 1378 | Return: 4.43%
Ceat is continuously trading below its short and mid-term moving averages as well as below 61.8 percent retracement levels of 4th September to 10th September 2018 up move with moderate volumes in daily scale, which indicates that the bias could remain bearish for the next few trading sessions.
The Daily Relative strength index (RSI) is trading at 43.53, showing negative momentum and MACD is continuously trading below the signal line whereas directional movement also indicating the negative trend.
Based on the above observations the stock is likely to move down in the near term. A trader can sell the stock at current levels and add shorts on some technical bounce around Rs 1355-1360 with a stop loss above Rs 1378 (closing basis) for a target of Rs 1295 & 1280