Stock picks of the day for January 16, 2019

Episode 810,   Jan 21, 2019, 02:55 AM

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Indraprastha Gas: Buy| Target: Rs 295| Stop loss: Rs 265 | Upside: 5 percent 

Indraprastha Gas maintained an upward trajectory for the last one week despite a negative market breadth and managed to swiftly move upward from its crucial resistance of 200-day moving average placed at Rs 269 on a closing basis.

Initially, the scrip made a healthy consolidation from a price-band of Rs 320 level towards a low of Rs 215. After making a strong rebound towards Rs 290 level, it saw a substantial fall towards the support of Rs 240 level but managed to regain the upward momentum post-consolidation.

The scrip formed a solid bullish candlestick pattern on weekly price chart along with a bullish pattern on a daily scale.

The momentum indicator outlined a positive divergence in price with its RSI at 66, coupled with MACD managing to make a bullish crossover in the same period to trade above its signal line. We have a buy recommendation for Indraprastha Gas which is currently trading at Rs 280.45.

Sun TV Network: Sell | Target: Rs 504 | Stop loss: Rs 560 | Downside: 4 percent

Sun TV continued to trade in negative trajectory for an extended period to fall below its crucial support of 200-day moving average placed at Rs 640 level in the previous session.

The scrip continued to consolidate from a higher level of Rs 830 level towards a low of Rs 560 level and made a marginal reverse trend that failed in the later period. The scrip made a 52-week low of Rs 513 in last trade that indicates sustain selling pressure.

It formed a long bearish candlestick pattern on both daily and weekly price chart. Further, a weekly RSI stood at 29 indicating persistent selling regime, and MACD continued to trade above its signal line. We have a sell recommendation for Sun TV Network that is currently trading at Rs 525.20.

ICICI Securities: Sell| Target: Rs 221 | Stop loss: Rs 240 | Downside: 3 percent

After remaining in a muted direction for 2-3 weeks, ICICI Securities came under massive selling pressure in last three trading sessions to close below its crucial support placed at Rs 250 level, and to trade point away from its 52-week low of Rs 225.

The scrip breached below its all crucial moving average levels in current trade despite making an attempt to reverse the trend that failed to keep scrip under selling regime.

The scrip formed a long bearish candlestick pattern on both daily and weekly price chart that indicates persistent selling pressure.

The momentum indicator continued to outline weak trend with weekly RSI at 33 as MACD started to trade below its signal line in past sessions. We have a sell recommendation for ICICI Securities that is currently trading at Rs 228.70.