Stock picks of the day for October 24, 2018

Colgate Palmolive (India) Limited: Buy| Target: Rs 1,200| Stop Loss: Rs 1,075| Return 7% 

After testing 1020 levels, the stock witnessed a V-shaped recovery and once again prices surpassed its short and long-term moving averages on the daily charts.

Additionally, the stock has also given a breakout above the bullish Flag pattern along with hefty volumes which suggest more upside in coming sessions.

So, traders can accumulate the stock in a range of 1135-1120 for the upside target of 1200 levels with a stop loss below 1075.

Divis Laboratories Limited: Sell| Target: Rs 1,145| Stop Loss: Rs 1,310| Return 8%

The stock has been consolidating in range of 1250-1320 from the last three weeks and has formed a Head and Shoulder pattern on the daily charts.

This week we have observed short build up into the stock along with negative divergence on secondary indicators like RSI and stochastic.

The stock is on the verge of a breakdown below the neckline of the head and shoulder pattern visible on daily charts. Traders can take a short position below 1245 levels for the downside target of 1145 and a stop loss above 1310.

Strides Pharma Science Limited: Sell| Target: Rs 365| Stop Loss: Rs 440| Return 10%

The stock has been maintaining its downtrend on the daily charts and is trading in a sloping channel with a formation of lower highs and lower lows pattern.

However, after a pullback rally from 400 to 440 levels in the recent past, we witnessed selling pressure which led to a fresh breakdown from bearish flag pattern visible on a daily interval.

Traders can take a short position in the range of 405-410 for the downside target of 365 levels and a stop loss above 440.