Stock picks of the day for September 05, 2018

Shriram Transport Finance Company Ltd: SELL | Close: 1297.25 | Target: Rs 1260 & 1230| Stop loss: Rs 1335 | Return: 3.08%

The stock has given a breakdown from the Symmetrical Triangle pattern around 1323-1322 on Monday with higher volumes. The daily Relative strength index (RSI) is showing negative momentum and MACD is trading around zero line with negative cross whereas (-) DI trading above (+) DI, signaling weakness in the stock.

Traders can sell the stock after some technical bounce around Rs 1300-1305 with a stop loss above Rs 1335 (closing) for a target of Rs 1260 & 1230 levels.

Mahindra CIE Automotive: BUY | Close: 277.90 | Target: Rs 318 | Stop loss: Rs 258 | Return: 14.43%

After making long consolidation, the stock has given a breakout above Rs 265-266 levels on Monday with a strong price momentum along with high volumes which helped the stock to cross its stiff resistance levels of 277-278.

The weekly Relative strength index (RSI) is trading at overbought zone but till showing positive trends and MACD is trading above zero line with positive crossover whereas (+) DI continuously trading above (-) DI, which indicates that the stock has the potential to move higher.

Traders can buy the stock at current levels and can add on dips around Rs 268-270 with a stop loss below Rs 258 (closing) for the target of Rs 318.

Shreyans Industries: BUY | Close: 178.85 | Target: Rs 205 | Stop loss: Rs 163 | Return: 14.62%

In daily scale, the stock has given breakout from symmetrical triangle pattern around 175-176 on Tuesday with higher volumes. The momentum indicators are in bullish mode on the weekly scale whereas (+) DI trading above (-) DI, signaling strength in the stock.

Traders can buy the stock in the range of Rs 176-179 with a stop loss below Rs 163 (closing) for a target of Rs 205.