Weekly Technical. Research Analysts August 28, 2017

Transcription

1 August 28, 2017 Weekly Technical Research Analysts Dharmesh Shah Nitin Kunte, CMT Dipesh Dagha Pabitro Mukherjee Vinayak Parmar

2 Healthy consolidation within structural uptrend provides opportunity Equity benchmarks settled marginally higher after recovering all losses incurred at the start of a truncated week. The Sensex ended at 31596, up 71 points while the Nifty was up by 19 points to Broader markets also settled marginally higher as the BSE midcap and small cap indices rose 0.3% and 0.1%, respectively. The weekly price action resulted in a Long Legged Doji candle comprising large lower shadow that highlights persistent demand at the key value area of 9700 for third consecutive week precisely in line with our expectations. As highlighted in the earlier edition, the market is undergoing time wise consolidation while forming a higher base above the key support of 9700 whereas the focus has turned to stock specific action. In the entire up move since January 2017, intermediate corrective phases have not lasted more than three to four weeks post, while the index has resumed uptrend. Based on this tendency, we expect the current consolidation to conclude over the coming week whereby it provides a good opportunity to enter quality stocks in a staggered manner. In the upcoming week, we expect the index to oscillate between the broad range of 9700 and A decisive close above 9950 will trigger short covering and open further positive options, going forward. The Nifty behaved precisely in line with our expectations and extended the range bound consolidation in last week s trade. The market seems to be absorbing adverse news flows like geopolitical tensions on the Korean peninsula, Infosys boardroom tussle and FII outflows while defending its key value area of 9700 over the last three weeks. It highlights the underlying strength and validates the presence of strong demand at elevated levels. We believe the current consolidation is part of the larger degree uptrend. Therefore, one should concentrate on stock specific action and ignore the noise The key observation over last couple of weeks is that broader markets represented by midcap and small cap indices have attracted demand after the initial slump towards their May 2017 lows. The heavily beaten down pharma space has also seen some buying interest emerge after approaching lower band of long term falling channel. Meanwhile, leading sectors like metal and FMCG have remained resilient during the recent corrective phase. Even the sectoral heavyweight banking index has seen a healthy breather. All in all, sectoral standing also corroborates the overall robust price structure Time wise, the down move from life-time high of to 9685 occurred in eight sessions whereas the index has taken eight sessions so far to retrace about 61.8% of fall. Even to a smaller degree, pullback from 9685 to 9947, taking three sessions, has been retraced by 80% in five sessions. Lack of faster retracement in either direction highlights the range bound scenario and indicates continuance of ongoing consolidation between 9700 and 9950 in the coming week. We do not expect the price wise correction to extend beyond the 9700 region in the present scenario as it is the confluence of lower band of expending channel comprising up move since April 2017 till date and previous breakout area Among oscillators, the 14 week RSI has approached its bull market support zone of 55 to 60 readings, which would lead to supportive efforts in the coming weeks Stock: Buy Asian Granito in range of , Target 476, Stop loss 398 Sectors: We expect banking, FMCG and metal sectors to perform well going forward. The pharma and It sector is likely to enter consolidation in the short term Resistance: 9950, Support: 9780, week RSI has approached its bull market support zone of readings 2

3 Nifty Bank Futures (24330): Base formation at key value area provides opportunity The Nifty Bank index recovered from an early slump to end the week on a high note led by private banking heavyweights while select PSU banking stocks also garnered supportive efforts at lower levels. The near month Nifty Bank futures settled at up 233 points or 0.97% for the week The weekly price action formed a bull candle, which maintained a lower high lower low compared to the previous session. However, the long lower shadow highlights demand emerging at the key value area of region. Follow through strength and close above the upper band of last two weeks consolidation range above will signal conclusion of current corrective phase and indicate resumption of upward momentum. Failure to do so, will lead to extension of the ongoing sideways consolidation in the coming weeks The Nifty Bank index behaved precisely in line with our expectations as it attracted strong demand after approaching its key value zone place between the region being the confluence of following: Lower band of expanding channel in place since March 2017 is at % retracement of the June-August up move is placed at Bullish gap area formed on July 13, 2017 is between Breakout area of June 2017 consolidation is at region Going forward, we expect the index to extend the ongoing consolidation and oscillate between the broad range of and amid stock specific action. The immediate hurdle for the index is placed around region as it is the confluence of 61.8% retracement of previous weeks decline and value of overhead falling trendline joining recent lower highs. A decisive close above the will signal conclusion of the current corrective phase and open up further positive options going forward. We believe the overall price structure remains positive and the current breather forms part of the larger degree uptrend. Therefore, it should be used as incremental buying opportunity to enter into quality stocks in a staggered manner CNX Bank Nifty Weekly Bar Chart Resistance: 24500, Support: 24110, RSI has flattened out after moving below its previous low Among oscillators, the 14 week RSI is seen flattening out after it slipped below its previous swing low of 70 reading while price is seen holding its key support base. It indicates a pause in the momentum and suggests continuance of the secondary consolidation over the coming weeks 3

4 Weekly Pick: Asian Granito India (ASIGRA): Price rebounding from major support area... CMP: Buying range: Target: Stop loss: During the previous week, the share price of Asian Granito India has rebounded from near the crucial support area of region as it was the confluence of following technical parameters : The 61.8% retracement of the previous rally from 334 to 500 is placed around 395 The lower band of the medium term rising channel support joining the lows since November 2016 is placed around 400 region The rising 21 weeks EMA, which as acted as major support for the stock in CY17 is also placed around 400 levels The stock continues to form a higher peak and higher trough on the weekly chart highlighting strength and the overall positive price structure The volume behaviour support continuance of the uptrend as the up move in the previous week from the support level was on the back of strong volume of almost double of the 10 weeks average volume of 2.5 lakh share per week indicating larger participation in the direction of the trend Among oscillators, the weekly stochastic has generated a buy signal moving above its three period s average indicating reversal of the corrective trend Based on the above technical observation, we believe the corrective decline has approached maturity and the stock is likely to retrace 80% of the previous decline from 500 to 380 placed at 476 levels in the short-term Weekly Bar Chart Price rebounding from major support area with strong volume signals reversal of the corrective trend and provides fresh entry opportunity to ride the next up move in the stock % retracement of previous 476 Weekly stochastic generated a buy signal thus validates the positive bias in price 380 Price rebounding from near the support area of 400 being confluence of: - 21 weeks EMA - The lower band of the rising channel % retracement of previous up move Strong volume at the support area indicate larger participation in direction of trend * Call has been initiated on I Click to Gain on August 24, 2017 at 10:52 hrs

5 Trend Scanner Deal Team At Your Service Positive Trends Scrip Name Close 50 days EMA 100 days EMA Delivery % 5 days Averge Maruti 7, , , Shipping Corporation Colgate Palmolive 1, , , HEG Negative Trends Scrip Name Close 50 days EMA 100 days EMA Delivery % 5 days Averge Bosch 21, , , BHEL Candlestick Pattern Bullish Candlestick Formations Bearish Candlestick Formations Scrip Name Pattern name LTP Scrip Name Pattern name LTP Wockhardt Engulfing Crompton Evening Star Max India Piercing Line Bosch Continuation Bharti Airtel Continuation Exide India Continuation HPCL Continuation BHEL Continuation Indusind Bank Continuation Dabur Engulfing JSW Steel Continuation State Bank of India Hammer Tata Steel Continuation Legend Positive and Negative Trends: The stocks listed in the positive and negative trends section above have been identified after running multiple technical queries based on combination of various technical parameters applied on a group of NSE cash stocks. The query modules are designed to recognise stocks, which are either at attractive technical entry levels based on overall price structure or resolving out of medium term consolidation. Consequently the query modules are also aimed at identifying the stocks which are under performers or in established down trends and therefore may not be good bets from short to medium term perspective. Candlestick patterns: Candlestick formations on weekly time interval charts typically point towards the prevailing sentiment comprising the entire trading week and could prove as an important tool for short term traders. 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. A more detailed description of Candlestick patterns and the way to understand them is listed at the end of the report 5

6 Market Activity Global Markets IBOV Index SHCOMP Index INDU Index NKY Index HSI Index UKX Index Global Currencies, Commodities & Bond Yields Rupee ( ) Euro Japanese Yen Gold/ounce Brent Crude/barrel India 10 year EURO 10 Year 71, % 3, % 27, % 7, % 21, ,167.9 DAX Index 0.6% 0.0% 19, % CAC Index 5, % Dollar Index 0.2% -1.0% British Pound 1.4% 0.1% Swiss Franc % -1.0% 1, , Copper (tonne) 0.7% 3.0% Silver (ounce) % 0.9% bps bps US 10 Year JPY 10 Year bps bps Domestic Sectoral Indices Performance INDICES Current 1Wk 1M 3M Sensex Nifty Auto Banking Capital goods Cons durables FMCG Healthcare IT Metal Oil & gas Power Realty BSE BSE midcap BSE small cap Nifty Gainers / Losers for the week (%) LUPIN DRREDDY AUROPHARMA AXISBANK HEROMOTOCO INFRATEL BAJAJ-AUTO BANKBARODA 6

7 Percentage 50% 50% 60% 40% 50% 50% 51% 49% 47% 53% 44% 56% 35% 65% 59% 41% 49% 51% July'16 Aug'16 Sep'16 Oct'16 Nov'16 Dec'16 Jan'17 Feb'17 Mar'17 Apr'17 May'17 Jun'17 July'17 Aug' Market Activity Deal Team At Your Service Institutional flow trends of last 12 months FII DII Sensex 20, , , , Months Weekly market breadth trends Advance % Decline % Sensex 80% 60% 40% 20% 0% Jun-17 7-Jul Jul Jul Jul-17 4-Aug Aug Aug Aug-17 Week Ended

8 Deal Team At Your Service Dow Jones (21813): Index to extend consolidation... The Dow Jones Industrial Average snapped its two week s losing streak ahead of key meeting of central bankers even as key Trump aides left the administration triggering concerns over policy execution. The Dow Jones Industrial average settled higher by 139 points or 0.64% at Dow Jones Industrials - Weekly Bar Chart Index likely to enter consolidation in range of in the coming weeks after the recent strong up move The weekly price action formed a counter attack bull candle, which pierced through last week s bear candle by more than 50% indicating buying support at lower end. It, however, carries lower high-low maintaining corrective bias. Still, it is resisting at trend line connecting November 2016 May 2017 lows The index is seen under profit booking after hitting high of On the downside, the key support is seen at as it is 38.2% retracement of May- August 2017 rally ( ) In coming weeks, the index is likely to enter a consolidation phase in the range of after the recent strong rally The weekly stochastic oscillator is reacting lower from the overbought territory and supports further consolidation For the coming week, the DJIA has support at 21630, while resistance is at 22050, Weekly stochastic reacting lower from the overbought territory and is likely to continue with its current corrective bias 8

9 Deal Team At Your Service German Dax (12167): Bias to remain positive above The German equity benchmark gained amid softening geopolitical tensions and strong Euro. Frankfurt Dax index closed flat settled at 12165, up by just 2 points The weekly price action formed a high wave candle with shadows on either side indicating intra week volatility. Index continued to trade within last week s large bear candle s range ( ). It indicates consolidation near support. Bias for the index, however, remains negative unless it sustains above last three week s identical highs in the range of As detailed in earlier editions, the index is seen in a corrective mode after it breached in late June. The key support for the index is placed near as it is the confluence of following technical parameters : The 38.2% retracement of November 2016 June 2017 rally ( ) The consolidation area of March-April 2017 is also placed around The sustained move above would indicate conclusion of corrective phase and lead the index towards region as it is the high of July 2017 and the 61.8% retracement of the current decline ( ) German Dax - Weekly Bar Chart Index has major support at region : -38.2% retracement - Previous consolidation area Weekly Stochastics seen bouncing off oversold readings The weekly stochastic oscillator has plunged to the oversold territory with reading of 25 and is likely to attract buying support near mark For the coming week, the Dax has support at 11900, while resistance is at 12340,

10 Deal Team At Your Service Hang Seng (27848): Index likely to challenge 2015 highs... The Hang Seng extended gains ahead of a meeting of key central bankers at Jackson Hole in a week which saw Typhoon Hato lashing island country. The Hang Seng settled higher by 801 points or 2.96% at for the week Hang Seng - Weekly Bar Chart Index likely to challenge May Weekly price action formed a strong bull candle in follow through to last week s inverted hammer as index continued to form higher high-low sequence indicating bullish trend The index registered fresh 52-week high after two weeks of correction indicating continuation of bullish trend. The key support for index in current context is now being revised upwards at levels as it is the confluence of following technical parameters : The recent correction low at The 38.2% retracement of July-August 2017 rally ( ) With last week s rally, the index looks set to challenge its May levels The weekly stochastic oscillator has eased out of overbought territory and currently holding in the positive terrain Weekly stochastic has generated a bearish crossover below its three period s average For the coming week, the Hang Seng has support at 27316, while resistance is at 28200,

11 Deal Team At Your Service Rupee spot (64.03): Pullback amid oversold conditions... The rupee ended marginally higher after a choppy trading week helped by weakness in the US dollar overseas even as foreign investors continued to pull out of domestic equities and bonds. The rupee ended at 64.03, 12 bps higher for the week Weekly Bar Chart - US$INR 20 weeks November The price action resulted in a small bar, which remained enclosed within the previous week s highlow range indicating non directional bias. US$INR has been trading in a broad range of for past few months indicating consolidation after sharp rally Structurally, the underlying trend for rupee continues to remain strong as long as rupee trades below 65 mark over medium term However, having achieved 50% retracement of rally ( ) domestic currency may take a breather while maintaining positive bias. A sustained break below would pave the way for 62 levels in the short-term as it is the 61.8% retracement of rally 29 weeks weeks week EMA 50% The weekly RSI is rebounding after posing positive divergence against price and may lead to further pullback efforts in coming weeks May For coming week, US$INR support is at 63.85, whereas resistances are at 64.30,

12 Deal Team At Your Service Gold ($1292): Marking time at upper band of trading range Gold prices fluctuated between gains and losses in a narrow range ahead of key speeches from central bankers at the Jackson Hole Federal Reserve gathering. The precious metal ended the week flat at $1292 The weekly price action resulted in a high wave candle formed completely inside previous weeks candle s high/low range. It indicates pause in the momentum amid consolidation at the upper band of five month trading range. Structurally, bullion prices have taken seven weeks to retrace preceding five week fall. Lack of faster retracement of the last falling segment highlights the overall consolidation bias and therefore prices will be vulnerable to bouts of profit booking at the upper band of five months trading range placed around $1300 region Gold prices have approached the upper band of last five months broader trading range of $1200 to $1300. Prices have faced multiple headwinds at the upper band of this range and reversed lower on every occasion in last five months. We believe only a decisive close above $1300 will open further upside potential towards $1320-$1340 region. The 78.6% retracement of the July to December 2016 fall ($1374 to $1123) placed around $1320 and multiple swing highs of August and September 2016 placed around $1340 make this the next major resistance zone for bullion Among oscillators, the weekly RSI has turned sideways after approaching the upper band of its oscillation range of 40 and 60 level indicating continuance of the overall range bound bias going forward Gold Weekly Candlestick Chart RSI has turned sideways at upper band of its consolidation band of 40 to 60 readings. 12

13 Deal Team At Your Service Brent crude ($52.21): Rudderless consolidation to continue Crude oil prices traded choppy in a narrow range before settling marginally lower after number of active Number of US rigs drilling for oil fell by five to 763 rigs last week. For the week, Brent crude prices settled at $52.21 down by 0.97% The price action resulted in a high wave candle formed completely inside previous weeks high/low range indicating narrow range bound trade amid lack of directional bias. Going forward, we expect Brent crude to remain volatile and extend the consolidation between the broad range of $50 to $54 levels over the coming weeks. The key overhead trend line ($54) has provided stiff resistance during the entire decline since January 2017 till date. Structurally, prices have so far retraced the last falling segment consuming five weeks ($54.67 to $44.35) by 80% while consuming nine weeks. Slower pace of retracement highlights the underlying weak bias. We believe price will remain subject to bouts of selling pressure around $54 region. The short-term rising trend line in place since June 2017 provides cushion around $50 region. A decisive break and close below $50 will trigger further downward bias in the short term. Among oscillators, the weekly RSI is seen facing hurdle at its key overhead falling trendline suggesting continuance of the range bound consolidation in the near term Brent Crude Weekly Candlestick Chart Weekly RSI is resisting at its falling trendline indicating continuance of consolidation in near term 13

14 Deal Team At Your Service F&O Stocks Pivot points for the Week (August September, 2017) COMPANY CMP S1 S2 S3 R1 R2 R3 Trend SENSEX Neutral BANK NIFTY FUTURE ve NIFTY FUTURE Neutral BANK NIFTY ve NIFTY Neutral ACC ve ADANI PORT Neutral AMBUJA CEMENT Neutral ASIAN PAINTS Neutral AUROBINDO PHARMA ve AXIS BANK ve BAJAJ AUTO ve BOB ve BPCL ve BHARTI AIRTEL ve BHEL ve BHARTI INFRATEL ve BOSCH ve CIPLA ve COAL INDIA ve DR.REDDY'S LAB ve EICHER MOTORS ve GAIL ve GRASIM ve HCL TECH ve HDFC ve HERO MOTO ve HINDALCO Neutral HIND. UNILEVER ve IDEA CELLULAR Neutral INDUSIND BANK ve INFOSYS Neutral ITC Neutral KOTAK MAH.BANK ve L & T ve LUPIN ve M & M Neutral MARUTI SUZUKI Neutral Source: NSE India, ICICIdirect.com Research 14

15 F&O stocks pivot points for the week (August September, 2017) COMPANY CMP S1 S2 S3 R1 R2 R3 Trend NTPC ve ONGC ve POWER GRID ve RELIANCE ve SBI ve SUN PHARMA ve TATA MOTOR DVR ve TATA MOTORS ve TATA POWER ve TCS ve TECH MAHINDRA ve TATA STEEL ve ULTRATECH CEMENT Neutral WIPRO ve YES BANK Neutral ZEE Neutral Source: NSE India, ICICIdirect.com Research 15

16 Forthcoming Economic Events Calendar Deal Team At Your Service Date India 31-Aug 31-Aug 1-Sep Japan 29-Aug 29-Aug 30-Aug 30-Aug 30-Aug US 28-Aug 30-Aug 31-Aug 31-Aug 1-Sep Euro Zone 28-Aug 30-Aug 30-Aug 30-Aug UK 28-Aug 30-Aug Event Fiscal Deficit INR Crore GDP YoY Nikkei India PMI Mfg Jobless Rate Job-To-Applicant Ratio Retail Sales MoM Dept. Store, Supermarket Sales Small Business Confidence Retail Inventories MoM GDP Annualized QoQ Pending Home Sales MoM Initial Jobless Claims Unemployment Rate M3 Money Supply YoY Economic Confidence Industrial Confidence Consumer Confidence Nationwide House PX MoM Net Consumer Credit 16

17 Notes Deal Team At Your Service 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 3-5% and trail stop loss 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 17

18 Recommended product wise trading portfolio allocation Product Allocations Product wise Max allocation in allocation 1 Stock Number of Calls Return Objective Frontline Stocks Mid Cap Stocks Duration Daily Calls 8% 2-3% 3-4 Stocks 0.5-1% 2-3% Intraday Stocks on the Move 6% 3-5% 7-10 Per Months 7-10% 10-15% 3 Months Weekly Calls 8% 3-5% 1-2 Stocks 5-7% 7-10% 1 Week Weekly Technicals 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 Gladiator Stocks 15% 5-10% 1-2 Stocks 15% and above 20% and above 6 Months Cash 10% - 100% 18

19 Candlesticks Glossary: Deal Team At Your Service 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 Continuation Patterns: Other than widely known Candlestick reversal patterns discussed above, there are numerous patterns mentioned in literature on Candlestick which describe the continuation of existing sentiments i.e. bullish or bearish. We have refrained from mentioning names of these patterns to avoid confusion. However, the remark Continuation Pattern refers to bullish or bearish candlestick patterns which suggest continuation of existing trend 19

20 Pankaj Pandey Head Research ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC Andheri (East) Mumbai

21 Disclaimer ANALYST CERTIFICATION We /I, Dharmesh Shah, Dipesh Dagha, Nitin Kunte, Pabitro Mukherjee, Vinayak Parmar 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. Terms & conditions and other disclosures: ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities Limited is a SEBI registered Research Analyst with SEBI Registration Number INH ICICI Securities is a wholly-owned subsidiary of ICICI Bank which is India s largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. ( associates ), the details in respect of which are available on ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other 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 section 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 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. While we would endeavour to update the information herein on reasonable basis, ICICI Securities is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so. Nonrated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances. The research recommendations are based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. These research recommendations and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. ICICI Securities will not treat recipients as customers by virtue of their receiving these recommendations. Nothing in this section constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed herein may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of these recommendations. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice. 21

22 Disclaimer 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 herein during the period preceding twelve months from the date of these recommendations 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 herein in the past twelve months. ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its associates 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 and their relatives have any material conflict of interest at the time of publication of this reports. It is confirmed that Dharmesh Shah, Dipesh Dagha, Nitin Kunte, Pabitro Mukherjee and Vinayak Parmar, Research Analysts giving these recommendations have not received any compensation from the companies mentioned herein 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 or their relatives do not own 1% or more of the equity securities of the company/companies mentioned herein as of the last day of the month preceding the publication of these research recommendations. Since Associates (ICICI group companies) 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 herein. It is confirmed that Research Analysts do not serve as an officer, director or employee or advisory board member of the companies mentioned herein. ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented herein. Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned herein. We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities. This report or recommendations are not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. 22