Stock picks of the day for October 29, 2018

Sterlite Technologies: Buy | Target: Rs 363 | Stop-Loss: Rs. 330 | Return: 5% 

Sterlite Technologies remained in an uptrend trajectory during the last week after trading on a rangebound level for over six months. It made a correction from the price-band of Rs 365 levels towards a low of Rs 281, down by about 23 percent before initiating the current upward trend.

It has also managed to break out from its 200-days level placed at Rs 310 levels coupled with strong volume growth during the past sessions indicating a buying sentiment at the current level.

The momentum indicator outlined a positive trend at the current level with RSI at 60 levels which are gradually moving upward, while the MACD made a bullish crossover recently to trade above its signal line. We have a buy recommendation for Sterlite Technologies which is currently trading at Rs. 345.95.

Jubilant Foodworks: Sell | Target: Rs. 1013 | Stop-Loss: Rs. 1191| Return: 4%

Despite its pullback from a low of Rs 1,125 towards 1268 levels, Jubilant failed to sustain the rally and witnessed another leg of a selloff on its weekly price chart. The scrip initially corrected from 1564 levels to breach below all the moving average level.

It recently slipped from its 200-days EMA levels placed at 1210 levels and formed a long bearish candlestick pattern on its weekly chart.

It currently holds a strong support at 1091 levels and a breach below this level will trigger another leg of the downward rally.

The RSI stood at 31 levels while MACD continued to trades below its Signal-Line. We have a sell recommendation for Jubilant Foodworks which is currently trading at Rs. 1055.55

Asian Paints: Sell | Target: Rs. 1154 | Stop-Loss: Rs. 1214 | Return: 3%

Asian Paints continued to remain under selling regime after recording a peak of 1467 level which was formed six months ago. It decisively breached below its long-term crucial levels of 200-days EMA placed at 1261 levels recently.

Despite its attempt to reverse the trend last week, it failed to sustain the momentum to form a bearish candlestick pattern on its weekly price chart.

The formation also induces a rejection of price at the current level which is expected to further put scrip under pressure on a short-term basis. It currently holds a strong support at 1091 levels and breaches below this level will trigger another leg of the downward rally.

The RSI stood at 38 levels while MACD trades below its Signal-Line, indicating current weakness in scrip. We have a sell recommendation for Asian Paints which is currently trading at Rs. 1190.30