3 hot stock picks from Reliance Securities

Reliance Securities recommends the following stocks:

BATA INDIA

CMP: 537| RECO: BUY| TARGET: 567-580| STOP LOSS: 510

• Bata India once again reversed from sub-515 mark (from resistance-turned-support line) and rose to an 8-day closing high.


• Due to recent reversal in the stock, we have observed positive divergence in the key technical indicators, which is quite positive for the stock.


• Currently, the stock is facing resistance in its short-term and medium-term moving averages amidst lack of participation. Hence, fresh long positions can be initiated on dips for better risk reward.


• In case of any negative surprise, a recent swing low will work as a key reversal point for the stock.


• Thus, long position can be initiated here for the target of Rs 567-580 and with a stop loss of Rs 510.

WIPRO

CMP: 258| RECO: BUY| TARGET: 284| STOP LOSS: 242

• Wipro continued prior consolidation after witnessing sharp decline from its multi month high of Rs 284.


• Due to recent consolidation in the price, key technical indicator-RSI reversed from its bull market support zone (i.e.40-33) and has given positive cross-over.


• As per the current daily set-up, we believe that stock is on the verge of a turnaround and will soon resume its uptrend.


• On the higher side, a major hurdle is observed around Rs 284, which is the prior swing high.


• In case of any negative surprise, lower band of that channel will save the stock from falling, but major support is placed around Rs 242, which is coinciding with the long-term moving average 200-day SMA and April month’s low.


• Thus, long position can be initiated here for the target of Rs 284 and with a stop loss of Rs 242.