Stock picks of the day for January 14, 2019

M&M: Buy around Rs 730-735| LTP: Rs 728| Target: Rs 775-790| Stop Loss: Rs 715| Return 8%

After correcting sharply from its recent high of around 815, the stock took a sharp reversal on back of monthly sales number and nosedived sharply.

Subsequently, the selling pressure exhausted near the 715-710 zones which coincided with the multiple support zone.

On the weekly and monthly chart, the stock has strong trendline support around 700-710 levels and from those levels, the stock is witnessing delivery based buying.

In the short term, we expect a bounce back in M&M and therefore we recommend traders to buy the stock around 730 levels with a price target of 775/790.

Dabur India: Buy around Rs 420-425| LTP: Rs 421| Target: Rs 475| Stop Loss: Rs 400| Return 12%

After testing the strong support zone of 360, the stock rebounded sharply and resumed its uptrend. In that optimism, the stock rallied towards 459.

Subsequently, it witnessed decent profit booking as a result stock descended towards 411. Looking at the daily chart, level of 411 coincided with the 78.6% retracement of its entire swing move joined from the bottom of 395 to the top of 459.

The daily RSI (14) has signaled ‘Positive Reversal’ pattern. The daily higher top higher bottom formation is intact which indicates that the overall trend is still up. Considering the recent consolidation, we believe that the stock is poised for an up move.

Traders can buy the stock around 420 with an upside price target of 473, and a stop loss could be placed at 400.

Sun Pharma: Buy around Rs 440-445| LTP: Rs 443| Target: Rs 480| Stop Loss: Rs 424| Return 8%

After correction from highs of 680, Sun Pharma has been consolidating in a narrow band of 400-440 for last few weeks. This week, the stock broke the range of higher side on the back of short covering followed by fresh long accumulation.

In the last 2 sessions, minor profit booking was seen in the counter, however, our short term outlook remains bullish and therefore we recommend buying Sun Pharma around Rs 440 for targets of Rs 480.