July 22, 2014 A Sharekhan technical research newsletter

Punters Call
The Nifty opened in the positive today, up 24 points at
7708. It is trading with a positive bias today. Over the
next couple of trading sessions we expect the Nifty to
trade with a positive bias. In this period the key support
will be near 7645 and resistance will be at 7810.
Of the stock futures, Reliance Industries and JSW Steel
are expected to move up during the day.
The Nifty has taken support at the 40-day exponential
moving average and been trading in positive since then.
It is also trading above the crucial 78.6% retracement
level which indicates that it is trading above the crucial
resistances. The daily momentum indicator has a positive
cross-over indicating that every dip is a buying
opportunity. The Nifty has been closing in the positive
for the last five trading sessions. Hence, if we get a dip
it should be used as a buying opportunity. It is trading
above the 20-day simple moving average of 7618, which
shall act as a crucial support.
Positive momentum continues
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Advance Decline
BSE 1512 969
NSE 936 490
Moving Average (hourly)
20(S) 7675 100 (S) 7634
40(S) 7611 200 (S) 7599
S: Simple moving average
Updated at 12.00 noon

10 11 14 15 16 17 18 21 22 23
7330
7340
7350
7360
7370
7380
7390
7400
7410
7420
7430
7440
7450
7460
7470
7480
7490
7500
7510
7520
7530
7540
7550
7560
7570
7580
7590
7600
7610
7620
7630
7640
7650
7660
7670
7680
7690
7700
7710
7720
7730
7740
7750
7760
7770
7780
7790
7800
7810
7820
7830
7840
7850
7860
7870
7880
7890
7900 - NSE50 [NIFTY] (7,732.10, 7,748.70, 7,725.80, 7,741.75, +9.20020)
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5 KST (0.75452)
Other technical observations
On the hourly chart, the momentum indicator has turned
positive and is trading above the zero line. The Nifty is
trading above the 20-hour simple moving average and 40-
hour exponential moving average, ie 7675 and 7641
respectively, which are crucial levels in the immediate run.
The market breadth is positive with 936 advances and 490
declines on the National Stock Exchange.
High noon July 22, 2014
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2
Looking Trendy
Target Trend Reversal Support / Resistance
Sensex 27000 Down below 25000 25000 / 27000
Nifty 8000 Down below 7440 7440 / 8000
Short Term Trend
Up Downswing matures Down

Icon guide
Upswing matures
Medium Term Trend
Target Trend Reversal Support / Resistance
Sensex 27100 Down below 24150 24150 / 27100
Nifty 8050 Down below 7100 7100 / 8050




Calls Action Action Segments Stop loss/ Stop loss* Reco Closing Potential # Tgt.1 Tgt.2 Risk/
date Reversal^ (Rs) price price P/L (%) (Rs) (Rs) Rwd.
(Rs) (Rs) ratio (%)
Dishman Pharma 21-Jul-14 Buy Cash Book Profit 130.70 141.00 158.00 12.06% 150.00 158.00 3/5
Monnet Ispat 18-Jul-14 Buy Cash 118.00 135.25 142.00 4.99% 172.00 172.00 1/2
Dredging Corp 17-Jul-14 Buy Cash - 445.00 478.00 478.50 0.10% 570.00 570.00 1/3
Dena Bank 16-Jul-14 Buy Cash - 71.40 74.50 73.30 -1.61% 82.75 82.75 3/8
IVRCL Infra 16-Jul-14 Buy Cash - 22.50 24.35 23.20 -4.72% 27.50 31.00 2/7
TCS 4-Jul-14 Buy Cash - 2,336.00 2,419.85 2,479.80 2.48% 2,500.00 2,550.00 2/3
Eros Int Media 5-Jun-14 Buy Cash - 169.00 195.00 234.10 20.05% 250.00 500.00 1/8
*DCL # CMP ^Intra-day Tgt. = Target Rwd. = Reward
Premium Technical Synopsis
High Noon
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July 22, 2014 2
3
Date Recommendation Action Stop Loss/ Stop Loss/ Buy/Sell Closing Potential % Targets
Reversal Reversal Price Price P/L at CMP
(Intra-day) DCL (CMP)
21-Jul-14 Reliance (Jul Fut) Buy - 975.00 1,004.70 997.60 -0.71% 1056-1078
16-Jul-14 Sesa Sterlite (Jul Fut) Buy - 286.00 299.00 294.55 -1.49% 323-335
11-Jul-14 IOC (Jul Fut) Sell - 336.50 337.15 329.40 2.30% 294-280
10-Jul-14 Bharti Airtel (Jul Fut) Sell - Stopped out 332.90 348.00 -4.54% 306-290
1-Jul-14 ZEEL (Jul Fut) Buy - 282.00 303.00 301.40 -0.53% 335-355
Smart Charts
NOTE: Kindly note that all stop losses in Smart Charts Calls are on closing basis unless specified.
TPB: Trailing profit booked
NOTE: Kindly note that all stop losses in Momentum Calls are on an intra-day basis.
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 Swing
For the short term1 to 5 days For the short term1 to 5 days
Stock Action Action Stop loss Price Closing Potential % Target1 Target2
Date price P/L at CMP
JSW Steel (Jul Fut) 22-07-14 Buy 1,190.00 1,221.85 1,213.00 -0.72% 1,280.00 1,310.00
Jain Irrigation (Jul Fut) 21-07-14 Sell Book profit 107.00 104.70 2.15% 104.70 102.50
Grasim (Jul Fut) 21-07-14 Buy Book profit 3,372.00 3,424.15 1.55% 3,440.00 3,510.00
Axis Bank (Jul Fut) 18-07-14 Buy 2,018.00 2,003.40 2,026.00 1.13% 2,045.00 2,085.00
ICICI Bank (Jul Fut) 18-07-14 Buy 1,437.00 1,472.00 1,480.10 0.55% 1,517.00 1,540.00
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