Stock picks of the day on April 5, 2019

PVR Ltd: Buy| LTP: Rs 1657| Target: 1805| Stop Loss: Rs 1555| Upside – 9%| Time Frame 6 months

The share price of PVR Limited has formed a higher bottom around Rs 1430 during February 2019 which validates the change of polarity principle as May-November 2018 resistance now reverses its role as support.

From a structural perspective, the current up move augurs well and reinforces positive stance for an impending breakout above life-time highs of 1665 in the coming weeks

The short-term support for the stock is placed around 1555 levels.

We expect the stock to resolve higher in coming months and head towards 1805, which is 123.6% retracement of entire decline during April 2017 – July 2018 (1655-1062).

Kansai Nerolac Paints: Buy| LTP: Rs 467| Target: Rs 550| Stop Loss: Rs 405| Upside – 17%| Time Frame 6 Months

The share price of Kansai Nerolac Paints is at the cusp of a falling channel breakout containing entire decline since high of Dec’17 (614) signalling a reversal of the secondary corrective trend and offers fresh entry opportunity for the next leg of the up move.

The stock has already taken 15 months to retrace just 80% of the previous 12 month’s up move from 319 to 614, a slower retracement of the previous major rising segment signals positive price structure and indicates strength.

The short term support for the stock is placed around 405 levels as it is the 61.8% retracement of the previous up move 343 to 499.

We expect the stock to resolve higher in the coming months. The favourable risk-reward set-up offers a fresh entry opportunity for upside toward 560 as it is 80% retracement of the entire decline (614 to 343).