Stock picks of the day for December 12, 2018

Dr. Reddy's Laboratories Limited: Buy| Target: Rs 2950| Stop Loss: Rs 2520| Return 10% 

About two weeks ago the stock gave a consolidation breakout on the weekly charts above its 200-days exponential moving average which was placed around 2600 levels.

However, we have observing that the stock is consolidating in a narrow range of 2600-2750 which has formed a Flag pattern on the daily charts.

This week we saw a breakout above the same and could trigger follow up buying in the scrip. So, traders can accumulate the stock in the range of 2680-2720 for the upside target of 2950 levels and a stop loss below 2520.

The Federal Bank Limited: Buy| Target: Rs 91| Stop Loss: Rs 77| Return 10%

After a sharp pull back rally from lower levels, the stock is trading well above its short-term moving averages along with consistent buying on every dip.

At the current juncture, the stock has formed an inverted head and shoulder pattern on the daily charts and is on the verge of a breakout above the same.

Traders can accumulate the stock in the range of 82-84 for an upside target of 91 levels and a stop loss below 77.

Glenmark Pharmaceuticals Limited: Buy| Target: Rs 715| Stop Loss: Rs 610| Return 10%

After testing 680 levels in the recent past, the stock has been trading lower on the daily charts with a formation of lower highs and lower bottom pattern.

Last week, the prices took support at its long-term moving average and once again risen sharply with a breakout above the falling trend line of a sloping channel.

The positive divergence on RSI and stochastic indicators are pointing towards more upside after a breakout. Traders can accumulate the stock in range of Rs 650-665 for an upside target of 715 levels and a stop loss below 610.