Stock picks of the day for January 11, 2019

Divis Labs Ltd: Buy| Target: Rs 1625| Stop Loss: Rs 1468| Returns 7%

The stock has been consolidating for the past two months and has finally broken out from the falling Wedge pattern on the weekly chart.

The breakout has been accompanied with a smart uptick in traded volumes. Divi’s has also managed to convincingly hold above its 50-DEMA and sustain above the same.

Apart from this, the relative strength further indicates that stock has the potential to move towards its potential target of Rs 1625 in the near-term.

Tata Motors Ltd: Buy| Target: Rs 199| Stop Loss: Rs 179.5| Returns 8%

The stock has broken out from a classic inverse head and shoulder pattern on the daily chart. Rising volumes and positive crossovers on the other momentum oscillators indicate that the current momentum is likely to get extended forward.

In addition, Tata Motors has also surpassed its 50-DEMA and also closed above the same which further accentuates our bullish stance on the stock.

UPL: Buy| Target: Rs 825| Stop Loss: Rs 744| Returns 7%

The stock has been trading consolidating for the past six weeks and has finally broken out from a Flag pattern on the weekly chart.

The momentum has been so strong that the stock has bounced back from its 21-DEMA. In addition, there has been a simultaneous breakout on the relative strength index as well, which, further indicates that UPL has the potential of moving higher towards Rs825.