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Otober 22, 2014
Muhurat Picks
Light up your Diwali with these sparkling stocks
Pipavav Defence and Offshore Engineering Co
The previous rise in the stock was a clear fivewave rise wherein wave 2 was an expanded
flat pattern and wave 4 was a zigzag pattern.
This five-wave rise completed a larger wave
(1), following which wave (2) retraced 86% of
wave (1). Now, it seems that the wave (3) has
begun which has an equality target of Rs88.
The stop loss for this trade is the swing low of
wave (1), ie Rs30.80. Hence, the risk/reward
ratio is quite favourable for bulls. The daily
Know Sure Thing (KST) has come well into buy
mode whereas the weekly KST is about to
provide a buy cross-over. So, based on the
above observations we recommend buying the
stock.
Stock
Weekly chart
5
x
75
70
65
60
w
55
3
x
50
45
y
40
1
4
z
35
2
30
25
20
60
50
40
30
20
10
0
-10
-20
KST (-21.0138)
Nov
Dec
2013
Mar
Apr
May
Jun
Jul
Aug
Action
CMP (Rs)
Target (Rs)
Stop Loss
Buy
39.70
88
30.80
Pipavav Defence
110
105
100
95
90
85
80
Sep
Oct
Nov
Dec
2014
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2
Mangalam Cements
The stock has provided a clear break-out from
the symmetrical triangular pattern of which
wave E was an overshoot. The volumes had
increased during the break-out which is one
confirmation of an uptrend. The weekly Moving
Average Convergence Divergence (MACD) is in
sell mode but the monthly MACD is well in buy
mode and that increases the probability of an
up move. The minimum equality target on the
upside comes to Rs561 whereas the stop loss
on the lower side is pegged at Rs179, ie just
below the break-out point. So the risk/reward
ratio at the current market price of Rs239 is
very favourable for the bulls. Based on these
observations we recommend buying the stock
for the above mentioned targets.
Stock
Mangalam Cements
Weekly chart
MANGALAM CEMENT (243.250, 243.250, 235.900, 238.900, +3.04999)
600
500
400
300
B
D
200
100
E
C
A
MACD (21.6211)
30
20
10
0
-10
-20
6000
Volume (85,348)
5000
4000
3000
2000
1000
0
-1000
x1000
05
2006
2007
2008
Action
CMP (Rs)
Target (Rs)
Stop Loss
Buy
244
561
179
2009
2010
2011
2012
2013
2014
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Diwali Special
Power Grid Corporation
The stock has provided a good break-out from
four years of consolidation. It has provided a
clear break-out from a parallelogram pattern,
which was formed in wave X/B. Now wave Y/
C up is expected. The momentum in the stock
is expected to rise as the equality target for
the stock is still a long way to go on the upside.
The equality target on the upside comes to
Rs213, which almost coincides with the upper
end of the rising channel. The volume activity
has picked up after the break-out compared
with the volume of the sideways trend. The
crucial support on the lower side is pegged at
Rs117. Hence, that should be the stop loss for
the trade.
Stock
Weekly chart
POWER GRID CORP OF INDIA (133.500, 141.500, 133.500, 140.500, +6.39999)
160
150
140
A
130
120
110
100
90
B
80
70
60
50
Volume (11,309,007)
40000
30000
20000
10000
x10000
MACD (DEMA-smoothed) (-1.07027, 0.25454)
10
5
0
2007
2009
2010
Action
CMP (Rs)
Target (Rs)
Stop Loss
Buy
140
213
117
Power Grid
240
230
220
210
200
190
180
170
C
2011
2012
2013
2014
Jubilant FoodWorks
The stock seems to have completed W-X-Y
pattern and wave 1 and wave I of 3 seems to
have completed. Now wave III of 3 will begin
which will have a minimum target of Rs2,125.
On the other hand, the support on the lower
side is pegged at Rs1,105, ie the swing low of
wave 2.
Weekly chart
2100
2000
1900
1800
1700
1600
1500
x
I
1400
1
1300
1200
II
1100
2
1000
w
900
y
800
30
25
20
15
10
5
0
-5
-10
-15
KST (0.78611)
Apr May Jun
Stock
Jubliant FoodWorks
Jul
Aug
Sep Oct Nov
Dec 2013
Mar
Action
CMP (Rs)
Target (Rs)
Stop Loss
Buy
1332
2125
1105
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Diwali Special
Network 18 Media & Investments
The stock has been correcting since June this
year. Our sense is that the stock is in a strong
uptrend and the current fall should be used as
an opportunity to buy into it. The stock is
currently trading near multiple supports, ie it
is trading around the 40-week moving average;
it is also trading around a medium-term rising
support trend line. In terms of Fibonacci
retracements, it has reached the 61.8%
retracement level of the rise from Rs28 to
Rs72, which is also a crucial support. It has
been consolidating near these crucial supports
and we sense that it is forming a base for the
next up move. We expect this crucial support
area to hold good and the stock should resume
its uptrend very soon. Investors can buy the
stock at the current market price for targets
of Rs72, which is the high it touched in June
this year, and Rs100, which is a psychological
level. A stop loss should be placed at Rs33.
Stock
Network 18 Media &
Investments
Weekly chart
NETWORK 18 MEDIA & INVESTMENTS
90
85
80
75
iii
72
0.0%
70
65
60
55
50
45
61.8%
iv
i
40
1
35
33
ii
30
100.0%
2
25
Aug
Sep
Oct
Nov
Dec
2013
Feb
Mar
Apr
May
Jun
Action
CMP (Rs)
Target (Rs)
Stop Loss
Buy
49.30
100
33
Jul
Aug
Sep
Oct
Nov
Dec
2014
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2015
Feb
Mar
Apr
Eros International Media
The stock has been consolidating in a sideways
manner since early September this year. Our
sense is that it is consolidating in wave 4 of a
larger degree impulse formation, ie we expect
the stock to form wave 5 on the upside. The
current consolidation can continue for some
more time and investors can use this as an
opportunity to accumulate the stock at the
current levels and add more if it falls to Rs215
levels. Rs215 is the 38.2% retracement level of
the rise from Rs106 to Rs283. Wave 2 of the stock
was sharp which retraced 61.8% of wave 1.
Hence, we expect wave 4 to be sideways as per
the guideline of alternation, which should
terminate around the 38.2% retracement level
(Rs215). The targets on the upside are placed at
Rs349, which is the target for a truncated wave
5, and Rs393, which is the equality target (Wave
1 = Wave 5). A stop loss should be placed at Rs194,
which is the high of wave 1.
Stock
Eros International
Media
Weekly chart
470
460
450
440
430
420
410
400
380
370
360
350
340
330
320
310
300
3
290
0.0%
280
270
260
iii
250
23.6%
240
230
220
38.2%
iv
215
210
1
200
190
180
i
170
160
ii
150
140
2
130
120
110
100.0%
100
arch
April
May
June
July
August
September
Novem ber
Decem ber2014
Action
CMP (Rs)
Target (Rs)
Stop Loss
Buy
239
393
190
Sharekhan
390
393
3
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