Stock picks of the day for January 01, 2019
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Tech Mahindra Ltd: Buy| LTP: 723| Target: Rs 780 | Stop-Loss: Rs 690| Return 8%
Tech Mahindra is best-performed among the technology stocks, where it gained by 43 percent in the CY18 as against the 23 percent rise in the Nifty IT Index.
After taking support around 200-day SMA multiple times during last couple of months, stock price reversed northward to close at highest level since 05- December. Oscillators and momentum Indicators like RSI and MACD is showing strength on daily charts.
The stock price is trading 7% below its all-time high level of 780 and the technical indicators are indicating that it is likely to reach its all-time high level in the coming days. Therefore, we recommend buying Tech Mahindra for the target of 690, and keep a stop loss below 780.
Kalpataru Power: Buy| LTP: 392| Target: Rs 430| Stop-Loss: Rs 370| Return 10%
After taking support around 20-day SMA last week, the stock price broke out from the consolidation by closing above the 390 level with a rise in volumes.
The stock price is making higher top and higher bottom formation on the daily chart. The stock price closed at a six month high on Monday and is now on the verge of breaking above its 200-day SMA which is placed at 394 levels.
Oscillators and momentum Indicators like RSI and MACD is showing strength on the daily charts. Therefore, we recommend buying Kalpataru Power for the target of 430, and keep a Stop Loss below 370
BHEL: Buy| LTP: 73| Target: Rs 82| Stop-Loss: Rs 69| Return 12%
BHEL has given downward slopping trend line breakout, adjoining the high of 23-January, 03-Sept, and 24-Dec by closing above the 72 levels.
The short-term trend of the stock is bullish where stock price is trading above its 5,20 day SMA. Oscillators and momentum Indicators like RSI and MACD is showing strength on daily charts.
Capital goods as a sector doing well since the last few days. BHEL has grossly underperformed in the same segment till now, however, technical indicators are indicating that it is likely to do well for the coming days. Therefore, we recommend buying BHEL for the target of 82, and keep a stop loss below 69.