Stock Picks Podcast on May 16, 2018: 3 stocks that could return up to 10%

Bharat Petroleum Corporation Ltd: Buy | Close: 405.80 | Target: Rs 438| Stop loss: Rs 387 | Return: 8.15%

After making a marginal consolidation, the stock has given a breakout above Rs 400-403 levels on Monday with moderate volumes. The daily Relative strength index (RSI) is making the higher bottom and higher top and MACD is trading with a positive crossover whereas (+) DI trading above (-) DI, which indicates that the stock has the potential to move higher.

Positional traders can buy the stock on dips at around Rs 400-403 with a stop loss below Rs 387 (closing) for the target of Rs 438.

NMDC: Sell | Close: 115.05 | Target: Rs 107 | Stop loss: Rs 124 | Return: 9.32%

On daily charts, the stock price is trading below its head and shoulders neckline of Rs. 115-116 levels with moderate volumes. The Daily Relative Strength Index (RSI) is showing a downward momentum and the MACD is trading below zero line with negative cross whereas (-) DI continuously trading above (+) DI from last eight trading days.

Based on the above observations the stock is likely to move down in the near term. Traders can sell the stock after some technical bounce-back around Rs. 118-120 with a stop loss above Rs 124 (closing basis) for the target of Rs 107.

Housing Development Finance Corporation Ltd: BUY | Target: Rs 2,040 | Stop loss: Rs 1,880 | Return: 5.97%

On the weekly charts, the stock is trading with positive momentum with moderate volumes. Weekly indicators, Relative strength index (RSI) and MACD are in buying mode whereas the OBV—On Balance, Volume is showing upward momentum, which indicates strong buying interest for short to mid-term.

Positional traders can buy the stock on dips at around Rs. 1,920-1,925 levels with a stop loss below Rs 1,880 (closing basis) for a target of Rs 2,040.