Stock picks of the day for March 06, 2019

Muthoot Finance Limited: Buy| Target: Rs 635| Stop Loss: Rs 525| Upside 12% 

The stock has been maintaining its uptrend and is holding well above its short and long-term moving averages.

This week we have observed fresh breakout in prices after a prolong consolidation of nearly two weeks along with some hefty volumes which suggest for more upside in prices moving forward.

Traders can accumulate the stock in a range of 565-570 for the upside target of 635 levels with a stop loss below 525.

Godrej Industries Limited: Buy| Target: Rs 540| Stop Loss: Rs 470| Upside 9%

The stock has been trading in a downward sloping channel since January 2019 with the formation of a lower high and lower bottom pattern on the daily interval.

However, last week the stock managed to take support around 470-480 zone and has risen back sharply above the falling trend line of the sloping channel.

Additionally, the stock has also given a breakout above the falling wedge pattern along with positive divergences on secondary oscillators.

Traders can accumulate the stock in a range of 495-500 for the upside target of 540 levels with a stop loss below 470.

AIA Engineering Limited: Buy| Target: Rs1985| Stop Loss: Rs 1650| Upside 12%

The stock has been consolidating in a broader range of 1530-1775 for more than three months along with consistent buying emerging at lower levels.

However, this week, we have observed a fresh breakout into prices after a prolong consolidation along with positive divergence on secondary oscillators.

Additionally, we have also observed a bullish flag breakout on weekly charts. So, traders can accumulate the stock in range of 1770-1790 for the upside target of 1985 levels with a stop loss below 1650.