Stock picks of the day for October 15, 2018
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KNR Construction Ltd: Buy| LTP: Rs 188| Target: Rs 205 | Stop-Loss Rs 178 | Return 9%
KNR Construction has been one of major underperformer since the last few months, which has fallen nearly 50 percent from the December high and has been in an oversold zone since last many weeks.
Oscillator like RSI is showing positive divergence where the stock price has made a new low and Oscillator has formed a higher low. This setup indicates that bears seem to have lost the dominance gradually and there could be a chance of trend reversal for short term.
On last Friday, the stock price also managed to close above its 5-day SMA, indicating a bullish trend for the short term. We believe that mid-cap and small-cap stocks which have fallen very sharply during CY18 can outperform now. Therefore, we recommend buying KNR Construction for the upside target of Rs 205, and keep a stop loss below Rs 178.
Nucleus Soft: Buy| LTP: Rs 380| Target: Rs 420 | Stop-Loss: Rs 360| Return 11%
After forming multiple bottoms around Rs 340 odd levels, the stock price reversed northwards during the last few days to close above its 5-day moving averages.
The momentum indicators and Oscillators are indicating strength in the stock for the short to medium term. After a sharp rally in the large-cap technology stocks, we believe that the bullishness can spillover to the mid-cap technology stocks.
Therefore, we recommend buying Nucleus Software for the upside target of Rs 420 and keeping a stop loss at Rs 360.
PNB Housing: Buy| LTP: Rs 930| Target: Rs. 1,010 | Stop-Loss: Rs 880| Return 9%
After a steep correction of nearly 35 percent from its August high, the stock price had reached an oversold level during the last week. Oscillator like RSI is showing positive divergence where the stock price has made a new low and Oscillator has formed a higher low.
This setup indicates that bears seem to have lost the dominance gradually and there could be a chance of trend reversal for short term. Therefore We recommend buying PNB Housing for the upside target of 1010, keeping SL at 880.