Stock picks of the day for December 17, 2018
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Dabur: Buy around 435-430 | Target: Rs 480 | Stop Loss: Rs 410 | Return 8.6 percent
After registering a high of 500, Dabur saw sharp correction and on the lower side, it tested 360 levels in the month of November. On the daily/weekly charts, the stock had strong support around the Rs 360 zone.
It respected the support placed at Rs 360 levels, and has seen a good pullback from there in the last few weeks. On the daily chart, inverse head and shoulder pattern is quite visible on the counter and it gave a breakout from the said pattern above Rs 430 levels.
In the short-term perspective, the outlook for Dabur remains bullish and any dip towards Rs 435-430 can be utilized to initiate long positions with a target of Rs 480 and a stop loss placed below Rs 410.
Indian Bank: Buy around 240 | Target: Rs 265 | Stop Loss: Rs 228 | Return 10 percent
The counter is moving in line with all the other PSU Banking stocks. Indian Bank saw a correction from higher levels and in that process made a low of Rs 210 levels. Since the last 3 months, the stock has consolidated at 210-265 levels.
On the larger degree framework, the 200-210 zone is a strong support for the stock. It retested its low of Rs 210 just last week, and witnessed a sharp pullback from there and managed to close above its short-term resistance of 230 levels.
On the back of short covering, we expect Indian Bank to see further upside from the current levels and can test the upper side of the range. Therefore, traders can buy the stocks around 240 levels with a target of 265 and a stop loss placed below 228.
Ashok Leyland: Sell around 104-105 | Target: Rs 96/92 | Stop Loss: Rs 109 | Return 11%
Ashok Leyland is in a corrective mode since September and is making lower highs and lower lows on the daily chart. On the larger degree charts, the stock has given a breakdown below its crucial support zone of 107 and for the last 2 weeks, it is trading below that.
In the futures segment, the stock is witnessing a short formation at higher levels and any pullback in the counter is being used to initiate fresh shorts.
Our short-term outlook on the counter remains weak and we recommend selling Ashok Leyland around 104-105 with a price target of 96/92 and a stop loss placed above 109.