Stock picks of the day for October 1, 2018

ITC: Buy| LTP: Rs 296.70| Buy around 295| Target: Rs 315| Stop Loss: Rs 287| Return 6%

On the daily chart, the stock has precisely tested the daily 89-EMA on Thursday and formed a bullish ‘Hammer’ pattern on daily chart. The said pattern got activated on Friday and we saw support based buying interest coming in the stock.

The daily RSI (14) precisely found support near 40 levels and started heading northward. The higher top higher bottom formation on the weekly chart is intact which indicates that the current trend is still on the upside.

Hence, we recommend traders to buy this stock around Rs 295 with a price target of Rs 315. A stop loss should be placed below Rs 287.

Titan Company : Sell| LTP: Rs 805.50| Sell around Rs 820 – 825| Target: Rs 740| Stop Loss Rs 861| Return 8%

After confirming its breakdown from the bearish ‘Head & Shoulder’ pattern on the weekly chart, the stock has seen a pullback which led to a retest of the neckline of the said pattern.

Once again, the selling pressure seen at higher levels and the stock resumed its downtrend last week. On the daily chart, we are seeing the formation of a negative reversal pattern which indicates that the overall trend is still down.

The weekly ‘Lower Top Lower Bottom’ formation is still intact. Hence, we advocate traders to go short in Titan in a range of Rs 820 to 825 with a price target of Rs 740. A stop loss should be placed above Rs 861.

V-Guard: Sell| LTP: Rs 176.35| Sell around Rs 180 – 182| Target: Rs 150| Stop Loss: Rs 194| Return 14%

Looking at the weekly chart, the stock has formed a Bearish Head & Shoulder pattern and off late, the stock confirmed its breakdown from the said pattern. The weekly RSI (14) convincingly closed below the 40 mark which supports our hypothesis.

Also, on the weekly scale, we are seeing a formation of Lower Top Lower Bottom formation. Hence, we expect this stock to correct further from the current level and therefore traders are advice to build a short position in a range of Rs 180 to 182 with a price target of Rs 150. A stop loss should be placed at Rs 194.