Stock Picks Podcast on May 21, 2018: 3 stocks that could return up to 11%
Time Technoplast Ltd: Buy | Target: Rs 145 | Stop-loss: Rs. 120 | Return 11%
Time Technoplast consolidated for almost a month after forming an upper band at Rs 180 levels and traded near the bottom band of Rs 118 levels.
However, scrip made a strong rebound in the last session to breakout from its 200-days EMA level placed at Rs 112, indicating a positive trend reversal. It also witnessed a strong volume growth above its average level to support uptrend.
Despite failing to hold at the day’s high level placed at Rs 134, the scrip formed an indicative bullish candlestick pattern on its daily price chart coupled with positive cues on MACD indicator moving towards upward crossover from Signal Line.
Further, the weekly RSI level inched higher from its earlier level which signaled a positive momentum. The support level for scrip is currently placed at Rs 118 and a strong resistance from 10-days EMA level is placed at Rs 158. We have a buy recommendation for Time Technoplast which is currently trading at Rs. 130.40
JK Tyres & Industries Ltd: Buy | Target: Rs 156 | Stop-loss: Rs 135 | Return 6%
JK Tyres made a sharp fall from its 52-week high which was registered a few months ago and continued to consolidate near Rs 143 levels which formed a strong support zone for the stock.
Last week it made an unusual breakout from its 100-days EMA level despite a weak market conviction, and a strong volume breakout indicating a positive trajectory.
On the daily price chart, the scrip made a solid bullish candlestick pattern coupled with reversal trend on its long-term chart. The RSI indicator at 44 levels also moved higher after trading near oversold zone indicating positive divergence coupled with the positive trend on its MACD.
The scrip is currently facing a resistance at 170 levels and support level at 129. We have a BUY recommendation for JK Tyres which is currently trading at Rs. 147.90
IRB Infrastructure Developers Ltd: Sell | Target: Rs 227 | Stop-loss: Rs 253 | Return 5%
IRB Infrastructure continued to consolidate on its weekly price chart despite attempting to breakout during its previous sessions from Rs 283 levels but failed to sustain the momentum.
Further, it witnessed a sustained selling pressure to breach below crucial EMA levels placed at Rs 249 levels coupled with weak volume trajectory, and thus indicating a negative sentiment for the scrip.
The scrip formed a strong bearish candlestick pattern on its weekly price chart suggesting a negative momentum in coming session.
Further, the secondary momentum indicator continued to indicate negative signal with RSI at 49 levels which is still above oversold zone coupled with weak support from MACD trend.
The scrip is facing a resistance at Rs 260 levels and support is placed at Rs 215 levels which will remain crucial for scrip. We have a SELL recommendation for IRB Infra which is currently trading at Rs. 238.50.