Stock picks of the day for December 24, 2018

Gruh Finance | Recommendation: Buy | TP: Rs 347| Stop-loss: Rs 305 | Upside: 5%

GRUH Finance traded in a positive momentum for consecutive sessions after remaining muted for short period, and subsequently managed to make decisive breakout from its 200-days moving average placed at 298 levels. The scrip made a healthy correction in last two months from a price-band of 340 odd levels towards a low of 240-250 levels.

After consolidation, the scrip made a strong rebound by taking a crucial support at 280 levels, and continued to remain upward with marginal headwinds. The scrip also witnessed a substantial volume growth during a same period, and formed a long bullish candlestick pattern on its weekly price chart.

The momentum indicator outlined a positive divergence in price with its weekly RSI at 57 levels, while MACD is likely to witness bullish crossover to trade above its Signal-Line in coming session

Zee Entertainment | Recommendation: Sell | TP: Rs. 430 | Stop-loss: Rs. 470 | Downside: 4%

Zee Entertainment continued to trade in negative trajectory on its six-month price chart despite making an initial recovery in past one month, but it failed to sustain the momentum in recent session to slip from its 200-days moving average on closing basis placed at 490 odd levels.

Despite its attempt to reverse a trend in one session, the scrip failed to sustain the momentum to trade below its psychological level which is seen at 450 odd levels. It further formed a solid bearish candlestick pattern on both weekly and daily price chart.

Further, a weekly RSI stood at 42 odd levels indicating negative divergence with respect to price, and MACD is likely to witness bearish crossover in coming session to trade below its Signal-Line.

Graphite India | Recommendation: Sell | TP: Rs. 770 | Stop-loss: Rs. 830 | Downside: 3%

Graphite India continued to trade substantially under negative trajectory over past one-month after making a healthy rebound from its October fall.

However, it failed to sustain the momentum to consolidate from higher band of 1050 odd levels towards a low of 790 levels currently. It remained under selling regime entire week to further slip below its 200-days moving average currently placed at 844 levels indicating a sustain pressure. It formed a bearish candlestick pattern with small upper tail on its weekly price chart and similar formation is seen on daily price chart.

The momentum indicator continued to outline weak trend with its weekly RSI at 41 level which signals downward divergence in price coupled with MACD trading below its Signal-Line on weekly chart.