Stock picks of the day for October 25, 2018
Share
Subscribe
RBL Bank: Buy| CMP: Rs.493.25 | Target Rs 537| Stop Loss Rs 468| Return 9%
After prolong corrective phase, the stock has formed a bottom which indicates a sign of reversal on the daily chart. The counter has taken
support at its 200-EMA and it is trading near its trendline support on the weekly time frame charts.
In the past, whenever the stock has retraced near its 200-EMA it has respected and moved higher from that level. In terms of candlestick patterns, the stock has formed a bullish Morning Star pattern near its bottom reviling hopes for bulls to gear ahead.
A bullish crossover in the daily RSI may induce a positive shift in bullish momentum in the stock price. Traders can accumulate the stock in the range of 488–496 for the target of 537 and a stop loss below 468.
SBI: Sell| CMP: Rs 255.70 | Target Rs 236.50 | Stop Loss Rs.266| Return 7.5%
On the daily chart, the price has breached its trendline support and witnessed a symmetrical triangle breakdown at 255.65. Moreover, the price is trading below its 50 & 21-DEMA which will act as a near-term resistance.
A bearish crossover with bearish range shift in the daily RSI (14) is being witnessed which may induce a negative shift in the stock price.
Traders can accumulate the stock in the range of 252-257.50 for the target of 236.50 with a stop loss above 266.
HDFC Ltd: Buy| CMP: Rs. 1741.45| Target: Rs 1890| Stop Loss Rs.1653| Return 9%
The stock after a steep correction has halted near its trendline support on the daily timeline which acted as a support in the previous two occasions.
In the candlestick pattern, the stock has formed a bullish Engulfing on the daily charts near its bottom which has revived hopes for the bulls to move ahead.
Furthermore, the counter is trading way above its 200-DEMA in the weekly sessions. The momentum oscillator RSI (14) has witnessed bullish divergence along with bullish crossover suggesting a continuation of bullish momentum.
Traders can accumulate the stock in the range of 1730-1755 for the target of 1890 and a stop loss below 1653.