Stock picks of the day for October 9, 2018

Bata India: Buy| LTP: Rs 894 | Target: Rs. 970| Stop-Loss: Rs 844 | Return 8.5% 

The stock price has corrected more than 24 percent from its August month high of Rs 1,116. The RSI on the daily charts has reached an extremely oversold zone.

On Monday, the index found support in the gap formed on 23rd July 2018 and then it rebounded from lower levels. The primary trend of the stock is bullish because it is still trading above its 200-DMA.

Considering the technical evidence discussed above, we recommend buying the stock at CMP for the target of Rs 970 and keeping a stop loss at Rs 844 on a closing basis.

Marico: Buy| LTP: Rs 310 | Target: Rs. 335| Stop-Loss: Rs 294 | Return 8%

The stock price has corrected more than 22 percent from its August month high of Rs 388. The RSI on the daily charts has reached an extremely oversold zone.

On Monday, the stock found support in the gap formed on 12th February 2018 and rebounded from lower levels. The FMCG Index itself has witnessed a healthy correction from its September month high and the probability of a strong bounce-back has also increased.

Considering the technical evidence discussed above, we recommend buying the stock at CMP for the target of Rs 335 and keeping a stop loss at Rs 294 on a closing basis.

Chennai Petro: Sell| LTP: Rs 232 | Target: Rs. 205 | Stop-Loss: Rs 250 | Return 12%

The stock price has formed a bearish head and shoulder pattern on the weekly charts projecting a healthy downside in the stock from current levels.

The stock is placed below all important moving average support. Lower tops and lower bottoms on the daily are seen on weekly charts.

Considering the technical evidence discussed above, we recommend selling the stock at CMP for the target of Rs 205 and keeping a stop loss at 250 on a closing basis.