Stock picks of the day for September 06, 2018

Bajaj Auto Ltd: Buy| LTP: Rs 2,758 | Target: Rs 3,000 | Stop Loss: Rs 2,640| Return 9%

On the daily charts, the price has started off lower but managed to recoup the entire loss of the previous session. In addition, price found support just above the rising trend line on the daily chart.

The weekly momentum oscillator, RSI (14) is in positive divergence and currently in a bullish crossover. Traders can accumulate the stock in the range of Rs 2765-2775 for the target of Rs 3000 and a stop loss below Rs 2640.

Vedanta: Buy| LTP: Rs. 228.75 | Target: Rs 254| Stop Loss: Rs 219| Return 11%

The stock has given a symmetrical triangle breakout on the daily chart which suggests that traders have raised interest in the stock.

In addition, we observed that the breakout prices were backed by higher volume. The stock has been sustaining above 21-EMA (exponential moving average) on a closing basis for the last several days which means traders are willing to pay higher than short-term average closing price.

Traders can accumulate the stock in the range of 227-231 for the target of 254 and a stop loss below 219.

Yes Bank: Buy | LTP: Rs.344.05 | Target: Rs 388| Stop Loss: Rs 324| Return 12%

The stock price has fallen sharply from 404 to 332 in few trading sessions. On the daily chart, an engulfing pattern has formed which suggests a possibility of the bullish reversal in the stock.

Also, the stock has just made a low around its previous swing low of 327. A positive divergence is also visible in the daily RSI (14) which may set a bullish momentum in the stock price.

Traders can accumulate the stock in the range of 340-345 for the target of 388 and a stop loss below 324.