Stock picks of the day for January 22, 2019

Tech Mahindra Ltd: Buy| LTP: Rs714| Target Rs. 770| Stop-Loss: Rs 680| Return 8%

After taking support around 200-day SMA multiple times during the last couple of months, the stock price reversed northward to close above its 5 and 20-day SMA.

During the last week, Tech Mahindra has given a breakout above the downward sloping trendline, adjoining the high of 03-October 2018 and 05-December 2018 by closing above the 710 levels.

The momentum indicators and Oscillators like RSI and MACD are showing strength on the daily charts. Therefore, we recommend buying Tech Mahindra for the target of 770 and keep a stop loss below Rs 680.

Kotak Mahindra Bank Ltd: Buy| LTP: Rs 1268| Target: Rs 1355| Stop-Loss: Rs 1220| Return 7%

After the announcement of Q3FY19 result, the stock price has broken out on the daily chart with a sharp jump in volumes by closing above the crucial resistance level of 1260.

The stock price also closed above its 20 and 200-day SMA indicating bullish trend for the short to medium-term. Oscillators like RSI is also showing strength on daily charts.

Private sector banks are doing well and look good on the charts for the short-term. Therefore, we recommend buying Kotak Mahindra Bank for the target of 1355 and keep a stop loss at 1220

Biocon Ltd: Buy| LTP: Rs 663| Target: Rs 715| Stop-Loss: Rs 630| Return 8%

After taking support around 600 odd levels multiple times during the last couple of months, Biocon reversed northward to close at a three-month high on Monday.

The stock price has also broken out on the daily chart to close above its crucial resistance level of 660. Oscillators and momentum indicators like RSI and MACD is showing strength in the stock.

The stock price is trading above its 20, 50 200-day SMA indicating a bullish trend for the short to medium-term. Therefore, we recommend buying Biocon for the target of 715 and keep a stop loss below Rs 630.