Stock pick of the day: Asian Paints among top three bets for short term

Asian Paints: Buy| LTP: Rs 1331| Target: Rs 1390| Stop Loss: Rs 1295| Return: 4%

This counter registered a Hammer formation on the weekly charts after retracing 50 percent of its last leg of the rally from the lows of Rs 1,092 registered in March 2018 to Rs 1490 levels. 

Hence, this decent correction of its larger upswing appears to be providing a decent entry point once again. Hence, positional traders should buy into this counter for a target of Rs 1390 with a stop below Rs 1295 on a closing basis.

JSW Steel: Buy| LTP: Rs 407| Target: Rs 447| Stop Loss: Rs 387| Return 10% 

This counter appears to be in a steady uptrend as it is consistently hitting new lifetime highs week after week. 

As this counter appears to be consolidating for the last couple of days in a range of Rs 388 – 414 positional traders should make use of this pause or minor corrective phase to go long in anticipation of this range breakout with a stop below Rs 387 on a closing basis. 

An initial target can be kept at Rs 447 whereas based on long-term trend studies a bigger target of Rs 470 can’t be ruled out in near future. 

United Spirits: Buy| LTP: Rs 581| Target: Rs 641| Stop Loss: Rs 560| Return: 10% 

After retracing 80 percent of its last of the rally from the lows of Rs 548 – 661 this counter registered a Bullish Engulfing formation strengthening the case for either the end of correction at the recent low of 565 or a pullback move. 

In case of pullback rally materialises then the initial target is placed around Rs 641 levels. Hence, positional traders are advised to buy into this counter with a stop of Rs 560.