Stock picks of the day for December 03, 2018

V-Guard Industries Ltd: Buy | Target: Rs 221 | Stop-Loss: Rs. 195 | Return 5%

V-Guard Industries continued to trade with positive momentum for consecutive session after slipping below its 200-days moving average placed at 202 odd levels during the last three months.

During the last five sessions, it managed to break out from crucial resistance of 200-days EMA level on closing basis taking a strong support at Rs 180 odd levels.

The scrip also witnessed a substantial volume growth in the same period during the upward rally, and also formed a solid bullish candlestick pattern on its weekly price chart.

The momentum indicator outlined a positive divergence in price with its weekly RSI at 56 levels coupled with MACD making bullish crossover above its Signal-Line on daily basis. We have a buy recommendation for V-Guard Industries which is currently trading at Rs. 210.40

IndusInd Bank: Buy| Target: Rs 1714 | Stop-Loss: Rs 1595 | Return 3%

After making a significant correction from its 52-weeks high of Rs 2038 levels towards a low of 1330 odd levels on its six-month price chart, IndusInd bank made a strong rebound during the recent period to trade on an upward trajectory.

It remained strong throughout expiry week to breach upward from 50-days EMA placed at 1605 levels on closing basis, coupled with strong volume breakout on daily basis.

Taking a strong support at 1550-1520 odd levels which also forms its 20-days EMA, the scrip reversed trend to form long bullish candlestick pattern on its weekly price chart, signaling a buying sentiment at the current level.

Further, a daily momentum indicator favored the current trend with RSI at 65 levels coupled with MACD trading above its Single-Line. We have a BUY recommendation for IndusInd Bank which is currently trading at Rs 1660.55

Sun Pharmaceutical Ind: Sell| Target: Rs. 469 | Stop-Loss: Rs. 502| Downside: 3%

Sun Pharma remained under selling regime for the past three months despite its attempt to revive the fall but failed to sustain the momentum.

The scrip continued to consolidate from September month after clocking 52-week high of 679 levels, and further breached below from important support of 531 levels which coincide with its 200-days EMA place at 560 odd levels.

It currently trades below all the moving average level with 450-440 levels being a crucial support to look forward. The scrip formed long bearish candlestick pattern on its weekly price chart coupled with a small-body bearish candlestick on the daily chart, and thus indicating a sustained pressure on scrip on a short-term basis.

The weekly RSI stood at 36 levels indicating negative price divergent while MACD continues to trade below its Signal-Line. We have a SELL recommendation for Sun Pharma which is currently trading at Rs. 484.40