Stock picks of the day for September 25, 2018

Axis Bank: LTP: Rs 597| Buy| Target: Rs. 645 | Stop-Loss Rs 570 | Return 8%

After making an all-time high during the month of August, the Stock price has nearly corrected 8% during this month. However, the primary trend of the stock is positive where the stock is trading above its 200-day Simple moving average.

Axis Bank is also outperforming other private sector banks. The stock price has reached near to a strong support of Rs 585 levels.

We believe that recent correction in the stock price is a running correction in the overall uptrend. Therefore, we recommend accumulating Axis Bank in the range of Rs 585-597 for the upside target of Rs 640, keeping a stop loss below at Rs 570.

Deepak Nitrite: Buy| LTP: Rs 270| Target: Rs. 295 | Stop-Loss Rs 255 | Return 9%

During the last week, Deepak Nitrite has broken out on the daily chart by closing above the crucial resistance level of Rs 284 levels. Primary trend of the stock is positive where it is trading near its all-time high level.

The stock price is also trading above its 20 and 200-day simple moving averages indicating a bullish trend for the medium to long-term trend.

The stock price has been making higher top higher bottom formation on the daily chart. We believe that recent correction in the stock price is a running correction in the overall uptrend.

Therefore, we recommend accumulating Deepak Nitrite in the range of Rs 260-270 for the upside target of 295, keeping a stop loss below Rs 255.

Karnataka Bank: Sell | LTP: Rs 101| Target: Rs. 90 | Stop-Loss: Rs 106 | Return 10%

Karnataka Bank has broken down on the weekly chart by closing below Rs 104 levels. The stock price has also closed at a two-year low with volumes rising during the last couple of days.

The stock price is trading below its 5, 20 and 200-day SMA indicating a bearish trend for the short to medium term. Therefore, we recommend selling Karnataka Bank for the downside target of 90, keeping a stop loss above Rs 106.