A Sharekhan technical research newsletter

May 05, 2015

Punters Call

Consolidation time
The Nifty opened at 8338.40, up 7 points, and has been
trading volatile since then. The index provided a good
break-out in yesterdays trading session and today it is
consolidating after yesterdays sharp recovery. On the
hourly chart, it is holding its uptrend line quite well.
Hence, 8299 is a crucial support on the lower side. The
short-term trend has shifted from down to up at least in
anticipation of a wave-B bounce till the 61.8%
retracement level of the previous fall. The target on
the upside, therefore, comes at 8575.

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 8257 and 8291 respectively, which are crucial
levels in the immediate run. The market breadth is positive
with 786 advances and 618 declines on the National Stock
Exchange.
Updated at 12.00 noon

The Bank Nifty too has provided a break-out from the

falling wedge pattern. Hence, the follow-up buying
should come which is missing today. However, 18300 is
being held which keeps alive the probability of further
upside. So intra-day traders can remain long on the index
till 8299 is held. The minimum target comes to 8419, ie
the 38.2% retracement level of the fall.

Advance

Decline

BSE

1,253

1,067

NSE

786

618

Moving Average (hourly)

20(S)

8257

100 (S)

8434

40(S)

8253

200 (S)

8504

S: Simple moving average

8950
8900
8850

100.0%

8800
8750
8700
8650
8600
61.8%
8550
8500

50.0%

8450
38.2%

8400
8350

23.6%

8300
8250
8200
8150

0.0%

8100
KST (0.35239)

19

20

23

24

25

26

27

30

31

1
6
April

10

13

15

16

1.0
0.5
0.0
-0.5
-1.0
-1.5
-2.0
17

20

21

22

23

24

27

28

29

30

4
May

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Looking Trendy

Short Term Trend

Index

Target

Sensex

28255

Down below 27000

8575

Down below 8187

Index

Target

Trend

Sensex

26350

Nifty

Trend

Reversal

Support / Resistance
27000/28255
8187/8575

Medium Term Trend

Nifty

7965

Up

Reversal

Support / Resistance

Up above 28088

26350/28088

Up above 8505

7965/8505

Icon guide
Down

Upswing matures

Downswing matures

Premium Technical Synopsis

Action
date

Calls

Action Segments
Reversal^

05.05.15

Bombay Dyeing

Buy

05.05.15

LICHSGFIN

04.05.15
04.05.15
*DCL

# CMP

Stop loss*
price

Reco
price
(Rs)

Closing
P/L (%)
(Rs)

Potential #
(Rs)

Tgt.1
(Rs)

Tgt.2
Rwd.

Cash

63.60

67.40

67.30

-0.15%

76.00

79.00

1/3

Buy

Cash

429.00

442.60

441.45

-0.26%

456.00

470.00

1/2

Adani Ports

Buy

Cash

321.00

340.30

344.50

1.23%

390.00

417.00

1/4

Bank Of India

Buy

Cash

216.00

224.10

223.15

-0.42%

233.00

248.00

1/3

^Intra-day

Tgt. = Target

Stop loss/
(Rs)

Risk/
ratio (%)

Rwd. = Reward

High noon

May 05, 2015

Home

Smart Charts
Date

Recommendation

5-May-15
5-May-15
4-May-15
4-May-15

JSW Steel May Fut

Tata Global May Fut
PNB May Fut
M & M May Fut

Action

Stop Loss/
Reversal
(Intra-day)

Stop Loss/
Reversal
DCL

Buy
Buy
Buy
Buy

922.00
140.00
155.00
1,137.00

Buy/Sell
Price
965.10
145.80
164.30
1,180.00

Closing Potential %
Price P/L at CMP
(CMP)
977.65
145.50
167.80
1,191.00

1.30%
-0.21%
2.13%
0.93%

Target1 Target 2

1,036.00
155.00
180.00
1,270.00

1,125.00
165.00
188.00
1,320.00

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

Momentum Cash Ideas

For the short term1 to 10 days

Action
Date

Stock

Action

Stop loss
price

Price

Closing

4-May-15

NTPC May Fut

Buy

150.00

152.30

151.30

-0.66%

155.50

159.00

4-May-15

Kotak Bank May Fut

Buy

Book Profit

1,341.00

1,365.25

1.81%

1,374.00

1,388.00

Potential %

Target1

Target2

P/L at CMP

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

Momentum Cash Ideas

For the short term1 to 10 days

Action
Date

Stock

Action

Stop loss
price

Price

Closing

Potential %
P/L at CMP

Target1

Target2
53.50

5-May-15

Dena Bank

Buy

49.40

50.45

50.60

0.30%

52.00

28-Apr-15

GHCL

Buy

74.40

77.00

77.65

0.84%

80.00

81.00

27-Apr-15

Cummins India

Buy

832.55

860.55

861.00

0.05%

897.00

916.00

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

High Noon

32

May 05, 2015

Home

Smart Charts

Trading Rationale
30

KST

20
10

Tata Global: Buy

0
-10
TATA GLOBAL BEVERAGES, Parabolic SAR

195
190
185
180

175

170
165
160
155
150
145

140
135

130
125
120

115
110
105
100
95
90
85
80

75

70

CMP: Rs145.80
Buy Tata Global at the current market price of Rs145.80
with the stoploss of Rs140 for the targets of Rs155 and Rs165.
The stock has been consolidating in a sideways manner since
November 2012. It has been almost two and half year long
sideways consolidation. In this process it has formed a
triangle pattern. Currently it is trading near the lower end
of that range. We expect the stock to start a fresh wave on
the upside or atleast test the upper end of the range which
makes it an attractive buy at this point in time with a good
risk reward ratio.

65
M A

M J

A S

O N D

2012

A M J

S O N

D 2013

A M

S O N

D 2014

M A M

S O

N D 2015

M A

M J

O N

10

KST

JSW Steel: Buy

-5

CMP: Rs965.10

-10
JSW STEEL

1450

1400
100.0%

1350

1300

1250

1200
61.8%

1150
50.0%

1100

38.2%

1050

1000

23.6%

950

Y
900
0.0%

Z
850

June

July

August

September

October

November

December

2015

February

March

April

May

June

Buy JSW Steel at the current market price of Rs965.10 with

the stoploss of Rs922 for the targets of Rs1,036 and Rs1,125.
The stock had been correcting in a complex corrective
pattern since August last year. Since late March this year it
halted its decline and started to pull back. The pull-back
lasted longer as compared with its previous pull-backs. This
is a sign of a trend reversal. The first leg of the pull-back
has taken the form of a leading diagonal. The leading
diagonal has also corrected itself which has found support
exactly at the 61.8% key Fibonacci retracement level. The
daily momentum indicator has completed its pull-back cycle
to the equilibrium line. We expect the stock to begin its
next wave of retracment.

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High noon

May 05, 2015

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