Stock picks of the day for October 3, 2018
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ABB: Buy| LTP: Rs 1,423| Target: Rs 1,540 | Stop loss: Rs 1,360| Return: 8 percent
ABB has been one of the outperformers during the month of September where it gained by 8 percent while the BSE Capital good Index has fallen by 10 percent.
The stock is trading above its 5 and 20-days simple moving averages which indicates that the primary trend is positive for the stock.
The stock price is taking support around its 200-days SMA in the last few days. We believe that the recent correction in the stock price is a running correction in the overall uptrend which is a good buying opportunity.
Therefore, we recommend investors to accumulate ABB in the range of Rs 1,390-1,423 for the upside target of Rs 1,540, and a stop loss placed below Rs 1,360.
Deepak Nitrite: Buy| LTP: 284| Target: Rs 310 | Stop loss: Rs 268| Return: 9 percent
During the last week, Deepak Nitrite had given a breakout on the daily chart by closing above the crucial resistance of Rs 290 with higher volumes.
The primary trend of the stock is positive where it is trading near its all-time high level while the Nifty midcap and small-cap index have fallen by 18 percent and 32 percent, respectively, year-to-date (YTD).
Deepak Nitrite is also trading above its 20 and 200-day simple moving averages which indicates a bullish trend for the medium to long-term.
The stock price has been making higher-top-higher-bottom formation on the daily chart. Therefore, we recommend accumulating Deepak Nitrite in the range of Rs 275-284 for the upside target of Rs 310, and a stop loss placed below Rs 268.
Exide Industries: Buy| LTP: 263| Target: Rs 285 | Stop loss: Rs 250| Return: 8 percent
After the recent correction of about 14 percent from the highs, the stock price has now reached its support placed around Rs 250.
The primary trend of the stock is still positive. The stock price is also trading above its 200-day SMA which is a bullish sign.
The momentum indicators and Oscillators are indicating strength in the stock for the short to medium-term. We believe that recent correction in the stock price is a running correction in the overall uptrend which is a good buying opportunity.
Therefore, we recommend investors to buy Exide Industries for the upside target of Rs 285 and place a stop loss below Rs 250.