WEEKLY REVIEW WEEK MAY 2013

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1 WEEKLY REVIEW WEEK MAY 2013

2 NIFTY OVERVIEW What has changed from last week to the current week is that USDINR has surged up strongly. And that is a concern. In last one month it has moved up by close to 4.5%. Technically, previous week was a bearish engulfing candle, which suggests bearish reversal. On the daily charts, the momentum has turned weak. So caution is advised. The outcome of GDP will be watched out for by the traders. However, in the near term if USDINR rises further, it could result in pulling out of some liquidity from the markets. Nifty has supports at and on the upside resistance lies at in the short term. Daily Candle Chart of Nifty (Futures) 2

3 BANK NIFTY OVERVIEW Technically, Bank Nifty has made double tops around levels and post that on the weekly charts, it has given a bearish engulfing candlestick pattern. This is suggests bearish reversal. In the coming days, we could see either some sideways movement in bank nifty if private banks continue to hold higher or else there could be profit booking here. Again volatility can be expected here depending on the outcome of GDP. Weekly Candle Chart of Bank Nifty (futures) 3

4 STOCKS IN FOCUS ASHOK LEYLAND LTD BSE Code: NSE Symbol: ASHOKLEY P/E :38.65 ISIN Demat:INE208A01029 Div & Yield %:4.10 EPS :0.63 Book Value:11.87 Market Cap (Rs Cr.): Face Value :1 Recommendation : BUY Last Close : Targets : Stop loss: (closing basis) Ashok Leyland has moved sideways for last few months and now the stock is showing a rounding bottom formation. The momentum indicators are suggesting divergence, which is positive for the stock. The stock is a buy for the targets of and stop loss of on closing basis. 4

5 STOCKS IN FOCUS WELSPUN CORP LTD BSE Code: NSE Symbol: WELCORP P/E :9.75 ISIN Demat:INE191B01025 Div & Yield %:0.87 EPS :5.09 Book Value: Market Cap (Rs Cr.): Face Value :5 Recommendation : BUY Last Close : Targets : Stop loss: 43 (closing basis) Welspun has made multiple bottoms at around range. This could be a long term base formation for the stock and we could see some the stock surprising on the upside from here. Recently the stock has given a bullish engulfing candlestick pattern on the daily charts along with sudden jump volumes. Such action near bottoms suggests accumulation in the stock. The stock is a buy for the targets of and stop loss of 43 on closing basis. 5

6 STOCKS IN FOCUS MRF LTD BSE Code: NSE Symbol: MRF P/E :9.09 ISIN Demat:INE883A01011 Div & Yield %:0.16 EPS : Book Value: Market Cap (Rs Cr.): Face Value :10 Recommendation : SELL BELOW Last Close : Targets : Stop loss: (closing basis) MRF has seen a strong rise over the last few years. However, now the stock is facing loss of momentum on the higher levels. On the daily charts, the stock has given bearish engulfing candlestick pattern, which suggests weakness from here. The stock is a sell ONLY below for the targets of and stop loss of on closing basis. 6

7 DISCLAIMER Created by: Inventure Research Contact : Research Coordinator, Inventure Growth & Securities Ltd,201,Viraj Tower, Near Landmark Building, Western Express Highway, Andheri (East),Mumbai Tele: Extension :578, Fax: milan.bavishi@inventuregrowth.com, website : Notice: This document is prepared by Mr. Milan Bavishi. Research for Inventure Group for private circulation exclusively for their clients. Disclosure: We and our affiliates, officers, directors, and employees, including persons involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company/companies mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company / companies discussed herein or act as advisor or lender / borrower to such company / companies or have other potential conflict of interest with respect to any recommendation and related information and opinions. The same persons may have acted upon the information contained here in. Disclaimer: This document has been furnished to you solely for your information and may not be reproduced or redistributed to any other person. This material is for the personal information of the authorized recipient, and we are not soliciting any action based upon it. This report is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. The material is based upon technical reading of the Graph. Though utmost care is taken by the writer of this document, and it should be relied upon as such. Neither Mr. Milan Bavishi of Inventure Growth & Securities Ltd. nor any person connected with any of these entities accepts any liability arising from the use of this document. Opinions expressed herein the report are our own and are based on Technical Research as of the date appearing in this document only. Reports based on Technical Analysis centers on studying charts of a stock's price movement and trading volume, as opposed to focusing on a company's fundamentals and as such, may not match with a report based on a company's fundamentals. While we endeavor to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward- looking statements are not predictions and may be subject to change without notice. Our proprietary trading and investment businesses may make investment decisions that may not exactly adhere to the recommendations expressed herein. No part of this material may be duplicated in any form and /or redistributed without Mr. Milan Bavishi s prior written consent. In so far as this report includes current or historical information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed. 7

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