Stock picks of the day for December 06, 2018

TCS: Buy| LTP: Rs. 2006.75 | Target: Rs 2170| Stop Loss Rs.1919| Return 8%

On the daily chart, the stock has moved up above the previous inflection point after making a double bottom. In addition, the price has moved above its 38.20 percent Fibonacci retracement level of the previous fall from 2275 to 1784.

The daily momentum indicator is in a bullish crossover with a current reading of 59.99. Traders can accumulate the stock in the range of 2000–2010 for the target of 2170 with a stop loss below 1919.

Dr Reddy's Laboratories Ltd: Sell| LTP: Rs 2671.65 | Target: Rs 2520 | Stop Loss Rs 2746| Return 5.60%

On the daily chart of Dr. Reddy’s Laboratories, a dark cloud cover is visible which will remain valid as long as the price does not move above the recent high of 2742.60.

Also, a negative divergence is visible on the daily RSI which suggests a possible bearish shift in the price momentum. Traders can sell the stock in the range of 2665-2680 for the target of 2520 with a stop loss above 2746.

Grasim Industries Ltd: Sell| LTP: Rs. 826| Target Rs 760| Stop Loss: Rs.862| Return 8%

The stock has changed its direction of the movement by breaching the upward sloping trendline on the daily chart. In addition, the stock has failed to move above 50-EMA in its recent price action.

Also, a double top formation is seen on the daily chart of the stock. Traders can accumulate the stock in the range of 820-830 for the target of 760 with a stop loss below 862.