Stock picks of the day for January 03, 2019

Balrampur Chini Mills: Buy| CMP: Rs.104.50 | Target: Rs 114-116.50| Stop Loss: Rs 100| Return 11%

The stock has given a falling trendline breakout which suggests the optimism in the stock has increased significantly and the trend has reversed now.

On the weekly chart, the stock has formed a cup and handle pattern. The daily strength indicator has entered into a positive crossover and rising.

Traders can accumulate the stock in the range of 103–105 for the target of 114-116.50 with a stop loss below 100.

Colgate Palmolive India: Sell| CMP: Rs 1301.80 | Target: Rs 1200| Stop Loss: Rs 1361| Return 8%

On the daily chart, an engulfing pattern is visible which suggests a short-term pause in the uptrend and possible weakness ahead. In addition, the stock has given a rising wedge breakdown.

Negative divergence in the daily RSI (14) also indicates a correction in the short-term. Traders can sell the stock in the range of 1295-1305 for the target of 1200 with a stop loss above 1361.

Maruti Suzuki India Ltd: Sell| CMP: Rs. 7267| Target: Rs 6800| Stop Loss: Rs 7486| Return 6.30%

The stock has given a rising wedge breakdown on the daily frame which signifies a change in the trend. In addition, the price has fallen below the 38.20% retracement level of the previous rally from 6500 to 7949.

The daily strength indicator, RSI (14) is in bearish crossover and falling with a current reading of 40.65. Traders can sell the stock in the range of 7260-7270 for the target of 6800 with a stop loss above 7486.