Weekly Calls January 27, 2015 Weekly Technical Picks Exhibit 1: Astec Lifesciences Astec Lifesciences (ASTLIF) Code ASTLIF CMP | 113.65 Comment Appears holding the accelerated Green support line. Action Buy in the range of 114-111 Reco. Date January 27, 2015 Stop-loss | 106 Targets | 130 / higher Source: ASA, ICICIdirect.com Research ICICI Securities Ltd. | Retail Equity Research Weekly Candlestick Chart Trend Scanner Positive Trends Weekly Candlestick Patterns Scrip Name Close 50 days SMA 20-day SMA 5-day SMA Ambuja Cement 252.5 229.9 234.2 248.4 61.60 Cipla Bosch Delivery % 5 days Averge 677.7 632.2 636.1 659.1 51.80 21,834.3 19,424.0 20,363.3 21,637.2 51.60 100.7 92.0 95.5 99.7 44.20 Gabriel India State Bank of india 327.5 309.0 312.1 321.9 51.00 Tata Motors DVR 373.8 337.2 342.8 360.0 56.50 Bullish Reversal Pattern Scrip Name Bullish Engulfing Scrip Name Close 50 days SMA 20-day SMA Biocon 413.1 437.8 422.6 5-day SMA Delivery % 5 days Averge 425.1 Scrip Name LTP Bearish Engulfing Gabriel 100.65 Raymond Exide Industries 201.75 Patel Engineering Bullish contunation pattern 510.75 92.85 Bearish contunation pattern Ambuja Cement 252.50 Biocon 413.10 Cipla 677.65 M&M Finance 251.80 Infosys Negative Trends Bearish Reversal Pattern LTP 2215.05 State Bank of india 327.45 Tata Motors DVR 373.75 39.00 Piercing Line 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 Oil India 553.20 Indian Hotel 118.60 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 8835.60 29278.84 8844.40 11343.20 10695.67 11366.09 Previous Change% 8513.80 28121.89 8535.05 11013.09 10633.11 11309.93 Nifty Gainers / Losers for the week (%) 3.78 4.11 3.62 3.00 0.59 0.50 ITC -3.0 -1.3 TECHM -1.2 HEROM OTOCO -1.1 TCS -0.5 KOTAKBANK 8.4 W IP RO France 4,640.7 6.0% Germany 10,649.6 4.7% UK 6,832.8 4.3% Japan 17,511.8 3.8% Hong Kong 24,850.5 3.1% US 2,051.8 1.6% Brazil 48,775.3 -0.5% China 3,351.8 -0.7% Commodities in US $ Close Prev. Close 1275.36 1276.83 -0.12 Copper (tonne) 5628.5 5681 -0.92 Brent Crude (brl) 48.23 49.75 -3.06 Gold (ounce) 9.1 SUNP HARM A Global Indices Weekly Performance %Chg 9.8 AXISBANK -10.0 Sectoral Indices – Performance TATAM OTORS 11.9 BHARTIARTL 12.0 -5.0 0.0 5.0 10.0 15.0 Institutional Activity FII Previous Week 6388 MTD 7733 Oct to Dec quarter 14713 Year 2014 98150 *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 29278.84 8835.6 20106.78 22984 17016 1Wk 1M 3M 4.1 3.8 4.0 4.4 5.0 5.5 5.8 6.3 6.3 8.8 8.3 9.6 9.9 21.2 11.5 Cons durables FMCG Healthcare IT Metal Oil & gas Power Realty BSE 500 BSE midcap BSE small cap 10269.95 8118.69 15506.76 11228.25 10510.06 9901.43 2187.59 1672.99 11343.2 10695.67 11366.09 3.5 -0.4 4.1 2.2 4.5 1.5 2.6 3.3 3.0 0.6 0.5 6.4 4.2 5.1 5.7 -3.1 -0.2 3.3 6.0 5.6 6.1 4.5 7.1 9.6 11.5 10.3 -7.6 -7.9 3.9 10.9 10.4 11.8 9.0 DII -4228 1468 14654 23843 Page 5 Forthcoming Economic Events Calendar Date US Event 26-Jan Markit US Composite PMI 26-Jan Markit US Services PMI 26-Jan Dallas Fed Manf. Activity 27-Jan Durable Goods Orders 27-Jan New Home Sales MoM 28-Jan MBA Mortgage Applications 29-Jan FOMC Rate Decision (Upper/Lower Bound) 29-Jan Initial Jobless Claims/Continuing claims 30-Jan GDP Annualized QoQ 30-Jan Chicago Purchasing Manager 30-Jan Univ. of Michigan Confidence India 30-Jan Fiscal Deficit INR Crore 30-Jan GDP Annual Estimate YoY China 28-Jan Leading Index UK 26-Jan BBA Loans for House Purchase 27-Jan Index of Services MoM 27-Jan GDP QoQ 28-Jan Nationwide House Px NSA YoY 29-Jan CBI Reported Sales 30-Jan 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] ICICI Securities Ltd. | Retail Equity Research Page 10 Disclaimer ANALYST CERTIFICATION We /I, Dharmesh Shah, Dipesh Daga, Nitin Kunte, Pabitro Mukherjee Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. 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