Stock picks of the day for January 29, 2019

Wipro Ltd: Buy| LTP: Rs 355| Target: Rs 385| Stop-Loss: Rs 335| Return 8%

The stock has recently registered a new 52-week high with higher volumes. IT sector has been outperforming for the last one month. The stock has already posted its quarterly results which were good.

The stock has broken out from its bullish “Cup and handle” pattern on the weekly charts. It is now trading above all important moving averages, indicating uptrend on all time frames.

Considering the technical evidence discussed above, we recommend buying the stock between CMP and 340 for the target of 390 and keep a stop loss at 335 on a closing basis.

Engineers India Ltd: Sell| LTP: Rs 114| Target: Rs 102| Stop-Loss: Rs 122| Return 11%

The stock price has breached the crucial support of upward sloping trendline on the daily charts. It failed to surpass the crucial resistance of its 200-DMA during this month and turned south.

The short-term moving averages have crossed medium-term moving averages on the downside, indicating a weak trend.

Indicators like MACD and ADX also turned bearish on the short term charts. Considering the technical evidence discussed above, we recommend selling the stock at CMP and average it at 118, for the target of 102, and keep a stop loss at 122 on a closing basis.

Eicher Motors Ltd: Sell| LTP: Rs 19900| Target: Rs 18400| Stop-Loss: Rs 21000|Return 8%

The auto sector has been underperforming for the last couple of months. The Nifty Auto index is on the verge of giving the lowest monthly close since March 2016.

Eicher Motor has been the weakest stock amongst all the large-cap auto stocks in the last two months. It is trading below all important moving averages, indicating a bearish trend on all time frames.

The stock has been forming lower tops and lower bottoms on the weekly charts. Considering the technical evidence discussed above, we recommend selling the stock between CMP and 20500 for the target of 18400, and keep a stop loss at 21000 on a closing basis.