Stock picks of the day for December 21, 2018

Bajaj Electricals Ltd: Buy above Rs 525.50| LTP: Rs 515| Target: 576| Stop Loss: Rs 495| Return 11%

On daily chart’s, the stock formed a strong base near 450 level which coincided with the weekly 89-EMA and rebound sharply. Looking at the overall set up, triple top pattern formation can be seen on the daily chart.

The said pattern will be activated only if the stock starts sustaining above the neckline of said pattern pegged near 525.50. The daily 9-45 EMA on price has signaled a positive crossover which supports the bullish hypothesis.

Considering the above technical evidence, we advocate traders to buy this stock above 525.50 with a price target of 576 and a stop loss placed below 495.

Motherson Sumi Ltd: Buy at 170| LTP: Rs 170.35| Target: Rs 194| Stop Loss: Rs 160| Return 14%

Looking at the daily chart, the stock precisely took support near its previous resistance of 151 (monthly candle close of July 2015) and rebound sharply from there.

The stock formed a Symmetrical Triangle pattern near the crucial support and eventually broke out from that pattern last Friday. The breakout of the said pattern was confirmed by a sharp rise in volume.

We are seeing a rising bottom formation on the daily RSI (14). Considering the above technical set up, traders are recommended to buy this stock at the current level with a price target of 194 and stop loss placed below 160.

Glenmark Pharma: Buy at Rs 687| LTP: Rs 686| Target: Rs 740| Stop Loss: Rs 650| Return 8%

Looking at the daily chart, the stock confirmed its breakout from the Symmetrical Triangle pattern; however, the follow-up buying was missing and as a result, the stock slipped into a consolidation.

On the weekly chart, the stock formed a higher highs pattern which is a bullish setup. The daily RSI (14) entered above 60 levels which is a bullish signal.

Hence, we recommend traders to buy this stock at the current level of 687 with a price target of 740. A stop loss should be placed below 650.