A Sharekhan technical research newsletter

August 18, 2014

Punters Call

Broader market gaining momentum

The Nifty opened at 7,785, down 7points. It is trading
higher for the sixth consecutive day. Earlier it lacked
support from its peers but now with the participation of
the broader market, especially CNX Bankex and CNX Midcap Index, we think that the short-term target should
be achieved swiftly. The breadth has started improving
which is another indicator that the broader market has
now started to gain momentum. Now on the lower side
7760 is a very crucial support and till that is not broken
the intra-day traders should continue to hold their longs
for an immediate target of 7870. The short-term traders,
on the other hand, should hold for a target of 7970. The
daily momentum indicator has come in buy mode which
is a big positive for bulls. So in view of these observations
we maintain our short-term bias up.
Of the stock futures, Union Bank of India and State Bank
of India look good and are expected to head higher.

Other technical observations

On the hourly chart, the momentum indicator has turned
positive. The Nifty is trading above the 20-hour simple
moving average and the 40-hour exponential moving
average, ie 7755 and 7722 respectively, which are crucial
levels in the immediate run. The market breadth is positive
with 1,030 advances and 420 declines on the National Stock
Exchange.
Updated at 12.00 noon

Advance

Decline

BSE

1,650

843

NSE

1,030

420

Moving Average (hourly)

20(S)

7755

100 (S)

7703

40(S)

7683

200 (S)

7675

S: Simple moving average

- NSE50 [NIFTY] (7,819.85, 7,828.60, 7,816.90, 7,824.45, +5.65039)

7850
7800
7750
7700
7650
7600
7550
7500
7450
7400
MACD (36.0585)

-50
23

30

7
July

14

21

28

4
August

11

18

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Looking Trendy

Short Term Trend

Target
Sensex

26700

Nifty

7970

Trend

Reversal




Down below 25200

Down below 7540

Support / Resistance
25200 / 26700
7540 / 7970

Medium Term Trend

Target
Sensex

27100

Nifty

8050

Up

Trend




Reversal

Support / Resistance

Down below 24150

24150 / 27100

Down below 7100

7100 / 8050

Icon guide
Down

Downswing matures

High noon

August 18, 2014

Upswing matures

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Smart Charts
Date

Recommendation

Action

18-Aug-14 Yes Bank (Aug Fut)

18-Aug-14 Uco Bank (Aug Fut)
12-Aug-14 Ultratech Cement (Aug Fut)

Stop Loss/
Reversal
(Intra-day)

Stop Loss/
Reversal
DCL

Buy/Sell
Price

Closing
Price
(CMP)

534.00
92.00
2,603.00

557.00
98.20
2,590.00

557.00
98.20
2,648.00

Buy
Buy
Buy

Potential %
P/L at CMP

Targets

0%
0%
2.24%

602-625
110-115
2750-2810

NOTE: Kindly note that all stop losses in Smart Charts Calls are on closing basis unless specified.
TPB: Trailing profit booked

Momentum Swing
For the short term1 to 5 days

Stock

Action
Date

Action

Stop loss

Price

Closing
price

P/L at CMP

Potential %

Target1

Target2

ONGC (Aug Fut)

18-Aug-14 Buy

406.20

419.95

418.05

-0.45%

432.00

441.00

Oriental Bank (Aug Fut)

18-Aug-14 Buy

259.00

266.00

269.05

1.15%

275.00

278.00

Yes Bank (Aug Fut)

18-Aug-14 Buy

547.00

548.15

556.45

1.51%

560.00

570.00

Hindzinc (Aug Fut)

14-Aug-14

Buy

156.50

160.10

162.55

1.53%

167.00

172.00

L&T (Aug Fut)

14-Aug-14

Buy

Exit

1,482.00

1,488.55

0.44%

1,515.00

1,545.00

ICICI Bank (Aug Fut)

12-Aug-14

Buy

1,471.00

1,463.50

1,509.50

3.14%

1,485.00

1,534.00

NOTE: Kindly note that all stop losses in Momentum Calls are on an intra-day basis.
TPB: Trailing profit booked
NOTE: Action taken after market hours will be highlited in blue colour.
Rules for momentum calls:
1) The stop loss should be placed after 9.17am in order to avoid freak trade
2) The same will be revised in the TradeTiger terminal every day for the pop-ups

Premium Technical Synopsis

Calls

Action
date

Oil

Action Segments

Stop loss/
Reversal^

Stop loss*
(Rs)

Reco
price
(Rs)

Closing
price
(Rs)

Potential #
P/L (%)

Tgt.1
(Rs)

Tgt.2
Risk/
(Rs)
Rwd.
ratio (%)

18-Aug-14 Buy

Cash

559.00

590.65

592.30

0.28%

650.00

650.00

1/2

Ambuja Cement 18-Aug-14 Buy

Cash

203.60

214.60

214.00

-0.28%

222.00

228.00

5/6

Monnet Ispat

Cash

118.00

135.25

127.40

-5.80%

172.00

172.00

1/2

*DCL

# CMP

18-Jul-14

Buy

^Intra-day

Tgt. = Target

Rwd. = Reward

High Noon

32

August 18, 2014

Home

Smart Charts
120

UCO BANK (95.2000, 97.3000, 95.1000, 97.1000, +1.20000)

B

115
D

Uco BankBuy

110
105

CMP: Rs98.20

100
95
A

90

85
80
75
70
65

Buy Uco Bank at the current market price of Rs98.20 with

the stoploss of Rs92 for the targets of Rs110 and Rs115. The
stock has completed wave E of the triangular pattern formed
in its wave 4 and now wave 5 up is expected to make new
high. The targets on the higher side are 110 and 115 whereas
the stop loss on the lower side is pegged at 92.

15000
10000
5000
x1 000

MACD (-1.65117)
5
0
18

24

31 7
April

15

28 5
12
May

19

26

2
9
June

16

23

30 7
July

14

21

28 4
11 18
August

25

1
Se

KST (0.16400)
5

Yes BankBuy

0
-5
660
650
640
630
620
610
600
590
580
570
560
550
540
530
520
510
500
490

YES BANK (543.150, 546.150, 536.400, 540.850, -4.35004)

CMP: Rs557
Buy Yes Bank at the current market price of Rs557 with the
stoploss of Rs534 for the targets of Rs602 and Rs625. The
stock has crossed a medium-term falling trendline and has
started a fresh rally. Short term momentum indicators are
in bullish mode

480
470
460
450
440
430
420
410
400
390
380
370
24 3
10
March

18

24

31 7
April

15

28 5
May

12

19

26

2
9
June

16

23

30 7
July

14

21

28 4
11
August

18

25

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High noon

August 18, 2014

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SHAREKHAN & affiliates may have used the information set forth herein before publication and may have positions in, may from time to time purchase or sell or may be materially interested in any of the securities mentioned or related securities. SHAREKHAN may from time to time solicit from,
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