1. Healthcare

Daily Calls
February 2, 2015
Market Outlook
Domestic Indices
Indices
Close
Change
Change%
29182.95
-498.82
-1.68
8808.90
-143.45
-1.60
8872.65
-113.65
-1.26
S&PBSE 500
11346.24
S&PBSE Midcap
10738.59
-128.28
-32.49
-1.12
-0.30
S&PBSE Smallcap
11329.26
-49.49
-0.43
Indices
Close
17416.85
Dow Jones
Nasdaq
4683.41
6771.57
FTSE
DAX
10697.34
24507.05
Hang Seng
Nikkei
17674.39
8830.00
SGX Nifty
* Asian Market at 7:30 am.IST
Change
225.48
45.41
-40.02
-45.90
-88.80
68.17
-48.00
Change%
1.31
0.98
-0.59
-0.43
-0.36
0.39
-0.54
S&P BSE Sensex
CNX Nifty
Nifty future
Sensex: We said, "Failure to sustain above the candle can open up negative options..." The index opened 162 points higher but
failing to sustain above Thursday's candle, shaved off 774 points intra-day, before ending 499 points or 1.6% lower. While the
Realty Index was up 2.1%, the Bankex lost over 3%. The A/D ratio also worsened to 1:2.
The action formed a Dark Cloud Cover (DCC), comprising the biggest intra-day loss since May 16, 2014, the day of the Lok Sabha
election results last year. After the sell-off, holding around the last gap-up can open up limited positive options. However, followup weakness/close below the DCC could test the previous resistance marked at 28822.
Exhibit 1: Sensex – Daily Candlestick Chart
Global Indices
Market Breadth
69
114
Unchg
NSE
BSE
911
Decline
569
Advance
0
500
1620
1241
1000
1500
2000
Recommendations for the day
Source: ASA, ICICIdirect.com Research
1. Sell Nifty Feb Future in range of 8880-8890
2. Buy Apollo Tyres in range of 242.50-243.50
3. Sell Allahabad Bank below 116.00
*All recommendations are of February Future
ICICI Securities Ltd. | Retail Equity Research
Exhibit 2: Nifty Future – Daily Candlestick Chart
CNX Nifty (Cash Levels) Technical Picture
Nifty
Trend
Intraday
Down
Short Term
Up
Trend Reversal
8810
8600
Support
8760-8720
8600
Resistance
8810-8850
9200
20 Days EMA
8615
200 days EMA
7826
Nifty Future Recommendations
CMP :
8872.65 (Feb)
Comment : ‘Feb Future premium increased from 34
points to 64. Reversed from 9000-mark, now
testing last Friday’s gap-up area. Reverse if
holds around 8800-mark
Action :
Sell in the range of 8880-8890
Targets :
8850/8830/Lower
Stop-loss :
8905.00
Source: ASA, ICICIdirect.com Research
ICICI Securities Ltd. | Retail Equity Research
Page 2
Trend Scanner
Global Currencies
Spot
Positive Trends
Close
Prev.close
% Chg
Rupee (|)
61.931
61.873
-0.09
Scrip Name
Dollar Index
94.468
94.782
-0.35
Bharat Petroleum Corp Ltd
Euro
1.134
1.132
0.22
British Pound
1.508
1.507
Japanese Yen
117.650
Australian ($)
0.776
Swiss Franc
0.922
Candlestick Patterns
Close
% Change
10-day SMA
Delivery (%)
748.85
2.00
681.90
46.10
Lupin Ltd
1585.00
1.98
1503.00
45.20
0.07
HCL Technologies Ltd
1791.75
8.60
1667.20
58.12
118.290
0.54
Tata Power
0.776
-0.10
Tech Mahindra Ltd
0.924
0.16
90.50
2.70
85.88
41.00
2868.50
-1.00
2821.80
66.50
Closing Yield (%)
Previous Yield (%)
India 10 year
7.69
7.71
US 10 Year
1.71
1.75
EURO 10 Year
0.34
0.36
GBP 10 Year
1.39
1.42
JPY 10 Year
0.27
0.30
US Dollar
Scrip Name
Close
% Change
10-day SMA
Delivery (%)
Oriental Bank of Commerce
265.65
-5.50
314.30
37.00
Idea Cellular
154.85
-2.90
161.40
49.20
Stocks rising for 5 days & stochastic overbought
Stocks falling for 5 days & stochastic oversold
Scrip Name
LTP
Stochastic
Scrip Name
LTP
Stochastic
171
90.3
PVR
680
31
Prev. Close
%Chg
Gold/ounce
1264.41
1257.27
0.59
DLF
Copper /ton
5519.5
5519.5
0.25
Hind Zinc
174.55
86.83
Cairn India
233
14.8
0.92
SKF India
1500
90.47
JK Tyre
121
22.8
49.54
49.13
DII
-37.6
29-Jan-15
1,723.8
-1,680.1
28-Jan-15
1,723.2
-1,292.7
27-Jan-15
953.5
-783.3
23-Jan-15
2,020.0
-1,300.0
ICICI Securities Ltd. | Retail Equity Research
Scrip Name
Close
121.0
Axis bank
588.1
VTL
442.0
Dr Reddy
3227.0
Bullish Continuation pattern
Bearish Continuation pattern
242.0
Union Bank
208.7
1249.5
Idea Cellular
155.3
BHEL
292.2
Oriental Bank
264.8
Lupin
1579.9
HPCL
662.5
Tata Power
91.4
Evening Star
Aptech
71.6
Stocks hitting 52 week high
Scrip Name
LTP
Adani Enterprises
641
Apollo Tyres
Bhel
Hind Petro
FII
-771.6
Close
JK Tyre
HCL Tech
Institutional Activity
Cash Segment (| Cr)
30-Jan-15
Scrip Name
Note: For Candlestick pattern description refer towards the end of
the report.
Oversold Stocks
Close
Brent Crude/barrel
Bearish Engulfing
Aurobindo Pharma
Overbought Stocks
Commodities
Bearish Candlestick Formations
Bullish Engulfing
Apollo Tyre
Negative Trends
Global Treasury Yields
Bullish Candlestick Formations
242
292.15
1794.35
662.5
Page 3
Stock recommendations for the day
Exhibit 3: Apollo Tyres (APOTYR)
Daily Candlestick Chart
Trendline breakout with rise in volume in the daily chart signalling continuation of
positive trend in the coming sessions
Apollo Tyres (APOTYR) January Future
CMP
244.40
Comment : Trendline breakout with rise in volume in the
daily chart and RSI in uptrend taking support
at its nine period's average in the daily chart
Action :
Buy in the range of 242.50-243.50
Targets :
248/250/Higher
Stop-loss :
240.50
RSI in uptrend taking support at its nine period's average in the
daily chart
Source: Bloomberg, ICICIdirect.com Research
ICICI Securities Ltd. | Retail Equity Research
Page 4
Exhibit 4: Allahabad Bank (ALLBAN)
Daily Candlestick Chart
Allahabad Bank (ALLBAN) January Future
CMP
116.40
Comment : Short term trendline breakdown in the daily
chart and RSI giving sell signal taking
resistance at its nine period's average in the
daily chart
Action :
Sell below 116.00
Targets :
114/113/Lower
Stop-loss :
117.10
Short term trendline breakdown in the daily chart signalling
continuation of profit booking in the coming sessions
RSI giving sell signal taking resistance at its nine period's average in the daily chart
Source: Bloomberg, ICICIdirect.com Research
ICICI Securities Ltd. | Retail Equity Research
Page 5
Previous Day’s Performance
Scrip
Nifty
Bharat forge
Gujarat Ambuja
PNB
Product
Future
Future
Future
Future
Strategy
Sell
Buy
Buy
Sell
Recommended Price
in the range of 9045-9050
above 1050
In range of 255-256
below 200.00
Targets
9015/8990/1066/1075/+
260.50/263/+
196/194/-
SL
9065.00
1041.00
253.00
202.30
Gain/Loss %*
-0.85
3.00
Comment
No trade
Stop loss triggered
No trade
Target 2 achieved
* Return Opportunity
Nifty Points gained for the day: 0 points
Gains over last 197 days: 577 points
Stock profits: Avg 1.08% per trade
(Cum. Profits over last 197 days:273.10%)
Strike Rate for the day: 1/2
(Cum strike rate over 197 days: 261/435
NOTE: The follow-up and performance review table of the strategies indicates the profit opportunity that was available in the strategies. Individual profits may vary,
depending upon the entry and exit price and stop losses
ICICI Securities Ltd. | Retail Equity Research
Page 6
Support and Resistance Table (Cash Levels)
SCRIP
S3
R1
29182.95
28887.55
28797
28706.4
29274.4
29467.85
29661.25
-ve
NIFTY
8808.90
8723.80
8697.45
8671.10
8834.55
8889.95
8945.30
-ve
ACC
1560.45
1534.05
1520.35
1506.70
1562.50
1576.70
1590.95
627.30
619.90
599.40
578.95
660.85
670.45
680.10
+ve
+ve
SENSEX
ADANI ENTER.
ADANI POWER
ADITYA BIRLA
ALLAHABAD BANK
ANDHRA BANK
CLOSE
S1
S2
R2
R3
TREND
-ve
51.95
51.90
51.25
50.60
53.20
53.90
54.55
1797.55
1774.95
1768.25
1761.55
1802.00
1815.55
1829.10
-ve
116.00
113.05
111.30
109.60
117.25
119.35
121.45
-ve
91.10
90.55
88.35
86.15
95.00
95.85
96.70
1313.55
1280.10
1263.00
1245.95
1324.30
1346.45
1368.55
APOLLO TYRES
242.55
241.70
238.70
235.70
247.70
250.55
253.40
ARVIND
290.75
285.30
278.15
271.05
291.75
295.00
298.25
-ve
65.70
64.85
63.85
62.85
65.90
66.45
67.00
-ve
APOLLO HOSPITALS
ASHOK LEYLAND
ASIAN PAINTS
+ve
-ve
+ve
857.75
845.05
831.25
817.40
862.25
870.85
879.45
AUROBINDO PHARMA
1247.75
1244.65
1237.90
1231.15
1258.15
1272.25
1286.35
BAJAJ AUTO
2391.70
2371.85
2361.75
2351.60
2392.85
2403.35
2413.85
-ve
193.15
178.95
176.75
174.55
196.50
205.25
214.05
-ve
BOB
BOI
-ve
+ve
266.25
256.75
253.55
250.35
268.65
274.60
280.50
-ve
BATA INDIA
1423.05
1402.20
1393.35
1384.45
1429.55
1443.25
1456.95
-ve
BHARAT FORGE
1034.45
1020.95
1009.95
998.95
1035.45
1042.70
1049.95
748.85
748.30
740.20
732.15
764.40
772.30
780.15
BPCL
-ve
+ve
BHARTI AIRTEL
373.70
366.30
361.95
357.60
373.60
377.30
380.95
-ve
BIOCON
414.75
414.65
412.50
410.35
419.00
420.70
422.45
+ve
CAIRNS INDIA
232.85
230.40
228.65
226.90
233.15
234.50
235.90
-ve
CANARA BANK
443.15
431.55
428.65
425.75
448.20
456.55
464.85
-ve
CENTURY TEXT.
574.25
575.15
570.40
565.60
584.75
589.60
594.45
+ve
CESC
731.30
729.60
723.75
717.90
741.35
747.05
752.80
+ve
CHAMBAL FERT.
CIPLA
COAL INDIA
60.50
58.30
57.60
56.95
60.55
61.70
62.85
-ve
695.75
690.35
684.00
677.65
696.15
699.05
701.95
-ve
360.85
359.20
351.60
344.05
361.30
362.30
363.35
1875.55
1867.90
1855.05
1845.00
1893.65
1906.55
1916.55
CROMPTON GREAVES
189.55
190.25
188.60
186.95
193.60
194.70
195.80
+ve
DABUR INDIA
256.25
250.65
248.25
245.85
256.40
259.30
262.15
-ve
79.35
78.10
77.55
76.95
79.50
80.20
80.90
-ve
COLGATE PALM.
DISH TV
ICICI Securities Ltd. | Retail Equity Research
-ve
Neutral
Page 7
SCRIP
DIVI'S LAB.
DLF
DR.REDDY'S LAB.
CLOSE
S1
S2
S3
R1
R2
R3
TREND
1742.35
1705.10
1693.35
1681.55
1744.95
1764.90
1784.80
169.90
170.05
167.80
165.50
174.65
176.55
178.40
3233.25
3165.20
3122.80
3080.40
3251.15
3294.10
3337.05
-ve
+ve
-ve
EXIDE IND.
186.05
181.90
180.50
179.05
187.40
190.15
192.85
-ve
FEDERAL BANK
141.85
140.10
139.30
138.50
142.25
143.35
144.45
-ve
+ve
FUTURE RETAIL
117.70
117.10
114.95
112.75
121.45
122.05
122.65
GAIL
423.00
422.85
421.60
420.35
425.35
428.15
431.00
5623.95
5611.10
5594.40
5561.90
5644.50
5661.20
5693.65
Neutral
719.15
716.70
712.70
708.25
724.70
728.75
733.15
Neutral
19.30
19.00
18.45
17.90
20.15
20.35
20.60
1061.20
1042.85
1034.65
1026.40
1064.80
1075.80
1086.75
-ve
310.75
306.70
304.50
302.30
311.75
314.30
316.85
-ve
3884.05
3838.55
3814.00
3789.40
3895.40
3923.85
3952.25
-ve
258.45
255.35
253.05
250.75
259.45
261.50
263.50
-ve
GLAXO SMITH.C.H.
GLENMARK PHARMA.
GMR INFRA.
GODREJ CONSUMER
GODREJ IND.
GRASIM
HAVELL'S INDIA
+ve
+ve
HCL TECH
1791.75
1790.05
1773.30
1756.60
1823.45
1862.95
1902.45
+ve
HDFC BANK
1077.35
1062.90
1052.20
1041.55
1078.05
1085.60
1093.20
-ve
HDFC
1262.50
1235.85
1223.55
1211.25
1273.45
1292.25
1311.10
-ve
HERO MOTO
2865.50
2836.30
2825.90
2815.45
2876.05
2895.90
2915.75
HEXAWARE TECH.
225.65
225.10
223.50
221.90
228.30
230.00
231.70
HINDALCO
139.70
137.85
136.65
135.50
140.10
141.20
142.35
-ve
HIND. UNILEVER
932.55
926.55
921.00
915.45
933.15
936.45
939.75
-ve
-ve
+ve
HPCL
657.95
655.20
647.35
639.45
670.95
681.85
692.75
+ve
HINDUSTAN ZINC
175.00
175.00
173.50
172.00
177.95
179.60
181.20
+ve
HDIL
110.05
108.55
105.15
101.75
115.35
119.20
123.05
+ve
ICICI BANK
360.70
349.55
347.45
345.30
363.25
370.10
376.90
-ve
70.80
69.35
68.75
68.15
71.20
72.10
73.00
-ve
IDEA CELLULAR
154.85
152.20
150.25
148.30
155.55
157.25
158.95
-ve
NSE INFRA DEV FINANC
172.05
171.60
168.30
165.00
178.15
179.20
180.25
+ve
37.60
36.55
36.35
36.15
37.85
38.50
39.15
-ve
INDUSIND BANK
870.20
862.70
858.70
854.70
871.95
876.60
881.25
-ve
INDIA CEMENTS
107.50
105.00
103.50
102.00
108.25
109.90
111.50
-ve
INDRAPRASTHA GAS
464.60
459.30
456.65
454.05
465.75
468.95
472.20
-ve
IOC
347.30
347.95
345.05
342.15
353.70
356.75
359.75
+ve
IOB
56.90
55.25
54.70
54.15
57.15
58.10
59.10
IDBI
NSE IND.FIN.CORP.OF
ICICI Securities Ltd. | Retail Equity Research
-ve
Page 8
SCRIP
IB REAL ESTATE
CLOSE
S1
S2
S3
R1
R2
R3
TREND
83.45
83.20
81.90
80.60
85.75
87.55
89.30
2141.90
2133.95
2125.05
2119.50
2151.75
2160.65
2166.25
IRB INFRA.
269.35
264.35
261.30
258.25
269.65
272.30
274.95
ITC
INFOSYS
+ve
Neutral
-ve
368.55
364.15
361.15
358.15
368.30
370.40
372.50
JAIPRAKASH ASS.
28.55
28.20
27.50
26.80
29.65
29.90
30.15
+ve
-ve
J.P.POWER VENT.
12.05
11.95
11.80
11.60
12.35
12.45
12.55
+ve
JAIN IRRIGATION
69.70
69.20
67.90
66.60
71.85
72.15
72.45
+ve
JINDAL ST&POW
158.65
158.25
156.60
154.95
161.55
163.50
165.40
+ve
JSW ENERGY
121.05
120.90
120.10
119.35
122.50
123.55
124.65
+ve
NSE JSW STEEL
977.45
954.90
948.80
942.70
978.80
990.75
1002.70
-ve
JUBILANT FOOD
1390.05
1366.80
1353.65
1340.50
1394.80
1408.80
1422.75
-ve
KARNATAKA BANK
142.90
142.00
140.35
138.95
145.20
146.80
148.20
Neutral
KOTAK MAH.BANK
1322.20
1317.95
1310.05
1302.55
1333.75
1341.60
1349.15
Neutral
L&T
1700.55
1675.65
1664.30
1652.95
1704.40
1718.75
1733.10
-ve
478.50
470.25
468.55
466.85
480.40
485.45
490.55
NSE LUPIN
1585.30
1579.55
1568.00
1556.50
1602.65
1614.50
1626.35
+ve
M&M
1265.10
1249.45
1240.05
1230.65
1270.40
1280.85
1291.35
-ve
MARUTI SUZUKI
3647.35
3602.25
3585.25
3568.25
3659.50
3688.10
3716.70
205.85
205.85
204.80
203.75
207.95
209.40
210.80
+ve
LIC HOUSING
MCLEOD RUSSEL
M&M FIN.SERV.
MRF
NSE NHPC
NMDC
-ve
-ve
255.25
253.85
250.70
247.60
260.15
262.00
263.85
+ve
40036.90
40014.75
39855.00
39695.25
40334.25
40459.50
40584.75
+ve
19.25
18.95
18.85
18.70
19.35
19.55
19.75
141.50
141.65
140.40
139.15
144.15
144.90
145.60
+ve
+ve
-ve
NSE NTPC
143.65
144.00
142.70
141.35
146.65
147.15
147.65
ONGC
351.35
347.80
345.80
343.80
351.50
353.35
355.20
-ve
OBC
265.65
259.05
247.05
235.05
268.25
272.85
277.45
-ve
PETRONET LNG
179.85
174.75
173.70
172.70
180.80
183.85
186.85
-ve
POWER FINANCE
298.45
298.95
296.00
293.05
304.85
307.25
309.60
+ve
POWER GRID
148.00
145.85
145.25
144.65
148.10
149.20
150.35
-ve
99.90
99.90
98.95
97.95
101.85
102.90
103.95
+ve
POWER TRADING
PNB
189.65
184.35
182.10
179.85
191.50
195.05
198.65
-ve
RANBAXY
702.60
693.45
686.20
679.00
703.30
708.20
713.10
-ve
RCOM
REL. CAPITAL
ICICI Securities Ltd. | Retail Equity Research
79.60
80.10
78.95
77.80
82.35
82.90
83.50
+ve
486.10
483.45
478.10
472.75
494.20
497.25
500.30
+ve
Page 9
SCRIP
CLOSE
S1
S2
S3
R1
R2
R3
TREND
RELIANCE INFRA.
508.25
504.90
496.80
488.75
521.05
523.70
526.40
RELIANCE
915.25
905.75
898.85
891.90
916.90
922.45
928.00
65.10
64.95
64.35
63.80
66.10
66.40
66.70
333.10
325.85
322.70
319.60
335.25
339.95
344.70
77.15
76.05
75.55
75.00
77.40
78.05
78.70
201.95
201.50
199.40
197.35
205.70
207.55
209.45
SHRIRAM TRANS.
1142.35
1125.45
1116.95
1108.40
1144.75
1154.40
1164.05
-ve
SIEMENS
1042.15
1001.45
995.75
990.05
1036.45
1053.95
1071.45
-ve
SBI
308.95
300.45
298.10
295.70
312.20
318.10
323.95
-ve
SUN PHARMA
917.75
913.90
909.55
899.05
922.55
926.85
937.35
Neutral
RELIANCE POWER
REC
SAIL
SESA GOA
+ve
-ve
+ve
-ve
-ve
+ve
SUN TV
407.45
402.00
396.25
390.50
408.75
412.10
415.45
-ve
SYNDICATE BANK
117.15
114.10
113.20
112.35
117.90
119.80
121.75
-ve
TATA CHEMICALS
456.65
457.60
453.95
450.30
464.95
469.20
473.45
+ve
TATA MOTOR DVR
363.95
362.05
360.05
357.15
366.05
368.00
370.95
Neutral
TATA MOTORS
585.15
575.95
570.90
565.90
587.75
593.65
599.55
90.50
90.25
89.30
88.35
92.10
92.70
93.25
+ve
+ve
TATA POWER
TATA GLOBAL BEV.
-ve
158.70
158.55
156.45
154.35
162.70
163.60
164.45
TCS
2482.05
2443.05
2429.10
2415.15
2495.55
2521.80
2548.05
-ve
TECH MAHINDRA
2868.50
2806.60
2792.45
2778.30
2883.80
2922.35
2960.95
-ve
TATA STEEL
390.45
390.55
388.40
386.30
394.80
396.95
399.15
+ve
TITAN IND.
430.60
425.30
420.70
416.10
432.35
435.85
439.40
-ve
UCO BANK
75.30
73.80
73.20
72.55
75.65
76.60
77.50
-ve
3140.35
3096.55
3081.10
3065.60
3140.55
3162.55
3184.55
-ve
209.15
203.60
200.60
197.65
210.35
213.70
217.10
-ve
ULTRATECH CEMENT
UBI
UNITED BREW.
975.05
958.65
949.95
941.20
980.45
991.35
1002.20
UNITED PHOSPH.
368.35
368.60
366.05
363.50
373.75
378.05
382.35
+ve
+ve
UNITECH
-ve
18.65
18.60
18.30
18.00
19.20
19.60
19.95
VOLTAS
268.60
263.25
261.60
259.90
269.75
272.95
276.20
-ve
WIPRO
606.55
605.55
602.35
599.10
612.00
615.70
619.35
+ve
NSE YES BANK
862.45
851.00
847.00
843.05
865.45
872.70
879.95
-ve
ZEE
376.75
370.90
369.05
367.20
377.80
381.25
384.70
-ve
ICICI Securities Ltd. | Retail Equity Research
Page 10
NOTES:
•
•
•
•
•
•
•
Please execute the recommendation within the levels provided in the report
Once the recommendation is executed, it is advisable to keep strict stop loss as provided in the report
Avoid entering into the recommendation in the first 5 minutes of trade
If the recommendation opens near the target levels due to gap up/gap down opening, then the
recommendation is considered not initiated
The recommendations are valid only for the day and should be squared off by the end of the day
Only stocks in derivatives segment have been considered for daily trading
Medium to long-term prospects of a stock does not have any bearing on the daily view
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 11
Recommended 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%
ICICI Securities Ltd. | Retail Equity Research
Page 12
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
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
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 13
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 14
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. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this
report.
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business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives
from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.
The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly confidential and meant solely
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ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past
twelve months.
ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of
managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction.
ICICI Securities or its associates might have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the companies mentioned in the
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ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its analysts did not receive any compensation or other
benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts have any material conflict of
interest at the time of publication of this report.
It is confirmed that Dharmesh Shah, Dipesh Daga, Nitin Kunte, Pabitro Mukherjee Research Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding
twelve months.
Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
ICICI Securities or its subsidiaries collectively or Research Analysts do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of
the research report.
Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies
mentioned in this report.
ICICI Securities Ltd. | Retail Equity Research
Page 15