Stock Picks Podcast for May 2, 2018: top 3 stocks can give up to 15% return

Marico: Buy| Target: Rs 365 | Stop loss: Rs 312 | Return 10%

The stock rose more than 3.5 percent with a significant jump in volumes during Monday’s session. The S&P BSE FMCG index has been performing very well for the last 4 weeks.

Marico is trading near to its all-time and 52-week high of Rs348.70. It is also trading well above all the important moving average parameters, indicating that the short to medium term need remains bullish. The stock price has recently taken support on its 100-DMA, placed at 314 and resumed the uptrend.

Higher tops and higher bottoms on the weekly and monthly charts are well intact. Oscillators like MACD and DMI are indicating strength in the existing trend. We recommend traders to buy Marico for the upside target of Rs365, keeping a stop loss below at Rs312.

IRB Infrastructure Developers Ltd: Buy| Target: Rs 325 | Stop loss: Rs 250 | Return 15%

The stock has risen more than 26 percent in the April with a significant jump in volumes. The stock price has given highest monthly close since July 2010, which is a huge development technically.

The stock has given a breakout from the long consolidation, held for the last 16 quarters, resulting in a breakout on the long-term charts.

Selected infrastructure stocks have been doing well for the last two-three months and IRB has now started participating from that segment.

Oscillators have been showing significant strength on the weekly and monthly charts. We recommend buying IRB for the upside target of Rs325, keeping a stop loss below at Rs250

Crompton Consumers: Buy| Target: Rs 260 | Stop loss: Rs 217 | Return 10%

The stock has been consolidating between Rs220 and Rs245 for the last two months. The stock price has formed multiple bottoms around Rs220 levels.

The stock has witnessed a healthy correction of 26 percent from January 2018 highs which resulted in the formation of a “Doji” candlestick pattern on the monthly charts for the last two months, indicating a good probability of bullish trend reversal from current levels.

Consumer electric stocks remained in traction in the recent past and Crompton is also likely to catch up with that uptrend. Technical evidence indicates that the stock is getting accumulated on dips and is now all set to appreciate from here with the rise in momentum.

We recommend traders to buy Crompton Consumers for the upside target of 260, and keep a stop loss below Rs217.