Stock picks of the day for October 4, 2018
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Motherson Sumi: Buy| CMP: Rs.242.85 | Target Rs 267| Stop Loss Rs.233| Return 10%
The stock, after a steep correction, is seen consolidating on the daily chart. On the weekly chart, the price has completed ABCD harmonic pattern which suggests a possibility of a bullish reversal in the stock.
A divergence in the daily RSI is being witnessed which may induce a positive shift in bullish momentum in the stock price. Traders can accumulate the stock in the range of Rs 240-245 for the target of Rs 267 and a stop loss below Rs 233.
Adani Ports Ltd: Buy| CMP: Rs. 329.75 | Target Rs 357| Stop Loss Rs.316| Return 8%
After prolong corrective phase, the stock has been consolidating at lower levels. On the daily chart, we saw the formation of an inverted hammer which suggests the possibility of a bullish reversal. The green candles on the daily chart were backed by decent volume. Traders can accumulate the stock in the range of Rs 327-332 for the target of Rs 357 and a stop loss below Rs 316.
Bata India Ltd: Sell| CMP: Rs. 915.30| Target Rs 845| Stop Loss Rs.957| Return 7.65%
The stock price has given a breakdown from the consolidation pattern which suggests increasing pessimism in the stock. The fall in price was backed by a rise in volume.
The momentum oscillator RSI (14) is in bearish crossover and falling suggesting a continuation of bearish momentum. Traders can accumulate the stock in the range of 930-910 for the target of 845 with a stop loss above 957.