RETAIL RESEARCH 04 Feb 2017

HSL Looking Glass
Periodical technical report on Banking & IT sectors…

Nagaraj Shetti
nagarajs.shetti@hdfcsec.com
Tel-022-30750021

RETAIL RESEARCH P age |1

BOI. Next upside levels to be watched is around 20500-600 and immediate support is now placed at 19950 levels. Andhra Bank. Syndicate Bank. TCS. Yes Bank and PSU Banks like Can Bank. PNB and ALBK are all in a sharp up trended move. After possibly showing minor setback around this hurdle the banking sector is expected to break above it in coming weeks. • The sector participants like Axis Bank. Summing Up: • The underlying trend of Banking sector is positive and more upside is likely come for the next 1-2 weeks. SBIN. then one may expect strengthening of upside momentum in the sector. BOB. Fed Bank. Fed Bank. BOB. • Weekly momentum oscillator like 14 period RSI has turned up and moved above 60 levels. One may look to buy Banking sector/participants at the current market and also look to add on dips. PNB. Tech Mah & HCL Tech NSE BANKING (BANK NIFTY) NSE Bank daily timeframe NSE Bank weekly timeframe Observation: • Daily Timeframe: The banking sector has witnessed an excellent upmove during this week and closed the week near the high. • The banking sector is now approaching the immediate resistance of down trend line (blue dashed line of larger degree- connecting previous important tops) around 20500 levels. • The immediate resistance of down sloping trend line (green dashed line connecting previous swing highs) has been broken on the upside around 19970 levels yesterday and the sector closed above it. Vijaya Bank. If the weekly RSI sustains/moves above this 60 levels in the next 1-2 weeks. RETAIL RESEARCH P age |2 . as per w-o-w basis. the banking sector continued this week with sharp follow through upmove and closed the week with gains of around 488 points. • Weekly timeframe: After showing sharp upmove during last week. ICICI Bank. Kotak Bank. ALBK & BOI CNX IT 10025 Up 9850 10125 Buy on dips Infosys. RETAIL RESEARCH Sectors CMP Trend Supports Resistances Trading Strategy Components expected to perform in line NSE Banking (Bank Nifty) 20196 Up 19950 20500 Buy cmp/dips SBIN.

• It would be prudent to buy the IT sector/components on any dips from here down to 9850-9750 levels for the upside target of around 10125 levels for the next couple of weeks. RETAIL RESEARCH P age |3 . RETAIL RESEARCH CNX IT: CNX IT daily timeframe CNX IT weekly timeframe Observation: • Daily timeframe: After showing steep decline during early part of last week. which is indicating emergence of buying interest from the lows. HCL Tech. • Sharp upside reversal has been observed as per daily timeframe chart in the last couple of session. then the whole structure could turn out to be a bottom reversal as per larger timeframe. the CNX IT sector bounced back sharply during later part and erased most of the intra-week loss. as we observe a formation of consistent lower tops and bottoms as per larger timeframe chart. Summing Up: • The short term trend of IT sector is positive. • The underlying trend of IT sector as per larger timeframe is still weak. the IT sector is now approaching immediate resistance of around 10100 levels (blue dashed up trend line-connecting previous swing lows. This is positive indication and it suggests buy on dips strategy for near term. CNX IT sector witnessed sharp declines and then upside bounce back during this week. If this week’s low of 9592 is protected in the next 1-2 weeks and if IT sector maintained upward bias. The IT sector is now approaching a key overhead resistance around 10100-125 levels and there is a possibility of minor weakness from the highs. Mind Tree. • We observe a formation of small bear candle with long lower shadow. TCS. as per the concept of change in polarity). OFSS and Just Dial are all now showing upside bounce back post sharp weakness. which is indicating a short term bottom reversal in the sector. • Weekly Timeframe: After showing consolidation type movement in the previous few weeks. Wipro. Tech Mahindra. but the larger term trend is still down. Meanwhile. • The key sector participants like Infy.

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