Weekly Calls October 27, 2014 Weekly Technical Picks Exhibit 1: Torrent Power Torrent Power (TORPOW) Code TORPOW CMP |154.10 Comment Appears holding previous resistance and Green support line. Action Buy in the range of 148-151 Reco. Date October 27, 2014 Stop-loss | 143.00 Targets | 163 / higher Source: ASA, ICICIdirect.com Research ICICI Securities Ltd. | Retail Equity Research Weekly Candlestick Chart Exhibit 2: Escorts Weekly Candlestick Chart Escorts (ESCORT) Code ESCORT CMP | 166.35 Comment Appears holding above its previous resistance levels. Action Buy in the range of 162-165 Reco. Date October 27, 2014 Stop-loss | 156.00 Targets | 178 / higher Source: ASA, ICICIdirect.com Research ICICI Securities Ltd. | Retail Equity Research Page 2 Trend Scanner Positive Trends Scrip Name Aditya Birla Nuvo Weekly Candlestick Patterns Close 50 days SMA 20-day SMA 5-day SMA 1,696.4 1,564.0 1,648.7 1,660.1 Delivery % 5 days Averge 43.40 Bharti Airtel 410.3 394.0 402.7 405.6 71.90 LIC Housing Finance 343.5 312.3 321.1 334.7 41.60 Lupin 1390.9 1314.5 1362.9 1376.3 41.20 515.7 504.0 505.2 501.3 47.40 Tata Motors Negative Trends Scrip Name Close 50 days SMA 20-day SMA Sun Tv 310.7 349.0 324.2 5-day SMA Delivery % 5 days Averge 310.0 47.50 Bullish Reversal Pattern Scrip Name Bearish Reversal Pattern LTP Bullish Engulfing Prism cement Divis Lab Scrip Name LTP Bearish Engulfing 77.35 Indiabulls realestate 66.1 1810.95 Bullish contunation pattern Bearish contunation pattern Axis Bank 423.75 Wipro 560.25 Bharti Airtel 410.25 Crompton Greaves 188.50 Divis Lab 1810.95 Gail 481.65 Tata Motors 515.65 Morning Star Jubilant Foodworks Note: Positive / Negative Trend stocks are scanned on the basis of mechanical signal. Stocks which are trading above their 50 day SMA (Simple moving average) and where 50 day SMA is rising for at least three sessions are considered in positive trend and further filtered for a momentum signal of a cross over between 5 and 20 period moving average. Opposite is true for Negative trending stocks. ICICI Securities Ltd. | Retail Equity Research Engineers India 1333.10 266.25 Note: For Candlestick pattern description please refer towards the end of the report. Page 4 Market Activity Domestic Indices Index Current CNX Nifty S&P BSE Sensex Nifty Future S&P BSE 500 S&P BSE Midcap S&P BSE Small cap 8014.55 26847.72 8023.85 10253.61 9665.71 10667.85 Previous Change% 7779.70 26108.53 7817.05 9919.11 9272.49 10313.97 Nifty Gainers / Losers for the week (%) 3.02 2.83 2.65 3.37 4.24 3.43 -1.2 Global Indices Weekly Performance ITC -1.0 LT WIPRO 7.5 MARUTI 7.6 HEROMOTOCO 8.2 8.4 US 1,964.6 4.1% TATAMOTORS France 4,128.9 2.4% Germany 8,987.8 1.6% JINDALSTEL UK 6,388.7 1.2% Hong Kong 23,302.2 1.2% China 2,302.3 -1.7% Brazil 51,940.7 -6.8% Close Prev. Close %Chg 1231.73 1236.17 -0.36 Copper 6762 6689 1.09 Brent Crude 85.78 86.35 -0.66 Gold 7.3 GAIL 15,291.6 5.2% in US $ INFY -1.0 Japan Commodities Sectoral Indices – Performance 8.5 DLF -12.0 -2.0 12.3 8.0 18.0 Institutional Activity FII Previous Week 1068 MTD -4319 July to Sep quarter 23643 YTD 79118 *Previous week figure are povisional figure *MTD- Month till date *YTD- Year till date ICICI Securities Ltd. | Retail Equity Research INDICES Sensex Nifty Auto Banking Capital goods Current 26847.72 8014.55 18025.95 18860.86 15133.42 1Wk 1M 3M 2.8 3.0 5.9 3.4 6.2 0.8 0.4 1.8 7.2 6.4 2.7 2.6 14.3 6.7 -3.6 Cons durables FMCG Healthcare IT Metal Oil & gas Power Realty BSE 500 BSE midcap BSE small cap 9665.14 7421.26 13923.77 10156.32 11309 10796.64 2082.63 1489.99 10253.61 9665.71 10667.85 4.1 1.5 3.4 0.3 4.2 2.4 4.7 4.2 3.4 4.2 3.4 -1.7 -2.8 -2.9 -5.1 -0.7 0.5 5.8 -5.9 0.0 -0.5 -3.4 11.7 5.3 16.6 3.9 -15.0 -2.3 -5.0 -24.5 3.2 3.6 3.9 DII 289 3490 16193 12679 Page 5 Strategy Follow up – Previous Week Date 15-Sep 20-Oct Scrip Bharti Airtel Sintex Industries Product Cash Cash Strategy Buy Buy RP 414-409 82.50 Target 449.00 90.00 SL 375.00 78.50 Gain/Loss % 4.30 Comment Open Book profit at 85.80 Forthcoming Economic Events Calendar Date US Event 27-Oct Markit US Services PMI 27-Oct Markit US Composite PMI 27-Oct Pending Home Sales MoM 28-Oct Durable Goods Orders 28-Oct S&P/CaseShiller Home Price Index NSA 29-Oct Fed QE3 Pace/of Treasury Purchase 29-Oct FOMC Rate Decision 30-Oct Initial Jobless Claims/Continuing claims 30-Oct GDP Annualized QoQ 31-Oct Univ. of Michigan Confidence India 27-Oct Eight Infrastructure Industries 31-Oct Fiscal Deficit INR Crore China 28-Oct Industrial Profits YoY 29-Oct Westpac-MNI Consumer Sentiment 29-Oct Leading Index UK 27-Oct Nationwide House PX MoM 29-Oct Net Consumer Credit 29-Oct Money Supply M4 MoM 30-Oct Lloyds Business Barometer 31-Oct GfK Consumer Confidence ICICI Securities Ltd. | Retail Equity Research Page 6 NOTES: • Please execute the recommendation within the prescribed range provided in the report • Once the recommendation is executed, it is advisable to keep strict stop loss as provided in the report on closing basis • We adapt a trading strategy of booking 50% profit when the position is in profit by 4-6% and trail stoploss on remaining position to the entry point • In recommendations where it is advised to buy on declines, if the target price is hit before activation of the call in prescribed range then the recommendation is considered not initiated • The recommendations are valid only for the week and are to be squared off by the end of the week. In case we intend to carry forward the position, it will be communicated through separate mail . Trading Portfolio allocation • It is recommended to spread out the trading corpus in a proportionate manner between the various technical research products • Please avoid allocating the entire trading corpus to a single stock or a single product segment • Within each product segment it is advisable to allocate equal amount to each recommendation • For example: The ‘Daily Calls’ product carries 3 to 4 intraday recommendations. It is advisable to allocate equal amount to each recommendation ICICI Securities Ltd. | Retail Equity Research Page 7 Recommended Product wise Trading Portfolio allocation Products Allocations Product wise Max allocation allocation in 1 stock Return Objective Number of Calls Frontline Stocks Mid-cap stocks Duration Daily Calls 8% 2-3% 3-4 Stocks 0.50-1% 2-3% Intraday Short term Delivery 6% 3-5% 7-10 p.m 4-5% 7-10% Opportunity based Weekly Calls 8% 3-5% 1-2 Stocks 5-7% 7-10% 1 Week Weekly Technical 8% 3-5% 1-2 Stocks 5-7% 7-10% 1 Week Monthly Call 15% 5% 2-3 Stocks 7-10% 10-15% 1 Month Monthly Technical 15% 2-4% 5-8 Stocks 7-10% 10-15% 1 Month Techno Funda 15% 5-10% 1-2 Stocks 10% and above 15% and above 6 Months Technical Breakout 15% 5-10% 1-2 Stocks 10% and above 15% and above 3-6 Months Cash in Hand 10% - - - - - 100% Candle ICICI Securities Ltd. | Retail Equity Research Page 8 Candlesticks Glossary: Candlestick patterns describe the market sentiment for the specified period. Some of the formations suggest reversal of sentiment (trend) and, therefore, are important for a chart reader. By themselves, the patterns do not carry any price target but only an indication of change in market behaviour. More importance needs to be given to the placement of the pattern within larger trend Morning Star: Potential bottom reversal pattern made of three candle lines. The first sizeable black candle reflects a market in which the bears are in complete charge. The next candle line--the small real body--shows a slight diminution of the bearish force. The white candle that makes up the last part of the morning star visually displays the bulls are gaining the upper hand. Lowest low amongst three candles becomes technical support Bullish Engulfing Line: A potential bottom reversal pattern. This pattern typically appears at the culmination of a decline or downtrend. The market falls, and a black candle forms (ideally a small black candle). Next, a white real body wraps around the prior session’s black body. Low of the pattern becomes short term support for prices Piercing Line: Potential bottom reversal pattern. A black body forms in the downtrend. The market continues moving south on the next session’s open but that session culminates in a white real body that closes (e.g. pierces) than half way or more into the prior black body. Lowest low between two candles is referred to as technical support for prices Hammer: A candlestick line which, during a downtrend, has a very long lower shadow and small real body (black or white) at the top end of the session’s range. There should be no, or a very small, upper shadow. Pattern suggests buying support during declines and needs confirmation in terms of sustainability of prices above head of the Hammer in following session Evening Star: Potential Top reversal pattern made of three candle lines. Comparable with a traffic signal. First white candle reflects a market in bullish trend. The next candle line--the small real body—warns waning momentum. The black candle that completes the evening star visually exhibits that prior up trend has stopped or reversed Bearish Engulfing Line: Potential top reversal signal. This two candlestick pattern emerges during a rally. A black candle real body wraps around a white real body (classically a small white candle) Highest high between two candles becomes resistance level for prices for future reference Dark Cloud cover: A dark cloud cover forms a top reversal pattern. The first session should be a strong, white real body. The second session’s price opens over the prior session’s high (or above the prior session’s close). By the end of the second session, it closes near the low of the session and should fall well into the prior session’s white body. Pattern suggests that market has a poor chance of rising immediately Shooting Star: A single candlestick line during a rally in which there is a small real body (white or black) at the bottom end of the session's range and a very long upper shadow. The candle line should also have little or no lower shadow. Pattern suggest the trouble for prices overhead ICICI Securities Ltd. | Retail Equity Research Page 9 Pankaj Pandey Head – Research [email protected] ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC Andheri (East) Mumbai – 400 093 [email protected] Disclaimer The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities Limited. 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