Stock Picks Podcast for April 30, 2018: 3 stocks can give up to 14% return

PTC India: BUY| CMP: 89.70| Stop Loss Rs86.70| Target Rs102| Return 14% 

The daily chart of PTC India shows a ‘Three Wave’ correction after a Five Wave rise. The correction retraced nearly 78.6 percent of the rise, which proved to be a crucial support. The daily lower Bollinger Band also offered support.

As per Elliott Wave Theory, PTC India is expected to form another set of a Five Wave rise from the current level. There is a high probability that the stocks will head higher from current levels and investors can initiate fresh positions on the long side.

Piramal Enterprise Ltd: BUY| CMP: Rs2635.80| Stop Loss Rs2550| Target Rs2900| Return 10%

Piramal Enterprise Ltd or PEL witnessed a multi-month correction from the highs of Rs3070 registered in June last year. The correction looks over in the last month at the low of 2275. Thereon the stock seems to have embarked on a fresh rally, which can last for several months.

Thus the stock looks positive from short-term as well as medium-term perspective. It is moving up along with a rising trendline which is a positive sign for the bulls.

The recent structure shows that the stock has consolidated above the trendline and has also broken out from the narrow range in which it was consolidating on the upside.

CEAT LTD: BUY| CMP: Rs1559.85| Stop Loss Rs1508| Target Rs1787

In terms of price patterns, CEAT is forming an ‘Inverted Head & Shoulders’ pattern, which is a bullish pattern. The pattern is spanning over several weeks so the implication of the pattern breakout is likely to be significant.

Currently, the stock is forming right shoulder of the pattern. Hereon, it is expected to head towards the neckline and can eventually breakout on the upside. The risk reward ratio at this level is very attractive to take a fresh long position.