MONTHLY REVIEW MAY MAY 2012

Transcription

1 MONTHLY REVIEW MAY MAY 2012

2 INDEX CONTENTS PAGE NO. INDICES IN FOCUS NIFTY OVERVIEW 3 BANK NIFTY OVERVIEW 4 STOCKS IN FOCUS HYDERABAD INDUSTRIES LTD 5 ALSTOM PROJECTS INDIA LTD 6 ADANI ENTERPRISES LTD 7 BANK OF INDIA 8 BOMBAY DYEING & MANUFACTURING CO. LTD 9 DECCAN CHRONICLE HOLDINGS LTD 10 DISCLAIMER 11 2

3 NIFTY OVERVIEW While on one side the GAAR (General Anti Avoidance Rule) has been postponed for a year and crude oil is getting hammered & is now trading below $100 mark, on the other side Rupee is showing signs of strengthening against dollar. The above setup is bullish for equity markets as a whole. Technically, Nifty (spot) is trading at its 50% retracement of the sharp rally that came from 4531to 5629 levels. This 50% retracement level is a critical support level. From here on, Nifty continuous to have a psychological support at around 5000 and on the upside 5300 is the next resistance level. Daily Candlestick Chart of Nifty (spot) 3

4 BANK NIFTY OVERVIEW Bank Nifty too has a setup similar to Nifty. After taking support at the 50% retracement level, bank nifty has bounced back. The effect is similar to a hammer candlestick pattern which is bullish reversal found after a decline. Going ahead, bank nifty has support at 9450 levels and on the upside the near term resistance lies at levels. Daily Candlestick Chart of Bank Nifty 4

5 STOCKS IN FOCUS HYDERABAD INDUSTRIES LTD BSE Code: NSE Symbol: HYDRBADIND P/E : 4.52 ISIN Demat: INE557A01011 Div & Yield %: 4.35 EPS : Book Value: Market Cap (Rs Cr.): Face Value : 10 Recommendation : BUY ABOVE 370 Last Close : Targets : Stop loss: 355 (on closing basis) Hyderabad Industries has recently broken a trendline resistance and is now re-testing it by taking support there. The volume action in the stock suggests buying interest. The stock can be bought above 370 for the targets of Once in trade, stop loss can be placed at 355 (on closing basis). 5

6 STOCKS IN FOCUS ALSTOM PROJECTS INDIA LTD BSE Code: NSE Symbol: APIL P/E : ISIN Demat: INE878A01011 Div & Yield %: 2.70 EPS : Book Value: Market Cap (Rs Cr.): Face Value : 10 Recommendation : BUY Last Close : Targets : Stop loss: 349 (on closing basis) Alstom Projects has given a strong bounce back. The stock has given a bullish engulfing pattern, which signals trend reversal. Heavy volume activity was seen when the stock moved from 320 to 416 levels, which suggests strong buying interest. The stock can be bought for the target of and stock can be placed at

7 STOCKS IN FOCUS ADANI ENTERPRISES LTD BSE Code: NSE Symbol: ADANIENT P/E: ISIN Demat: INE423A01024 Div & Yield %: 0.36 EPS : 2.16 Book Value: Market Cap (Rs Cr.): Face Value : 1 Recommendation : BUY Last Close : Targets : Stop loss: 257 (on closing basis) Adani Enterprise has made double bottoms at 261 levels. Double bottom is a bullish reversal pattern where prices reach the same level twice. The primary reason for believing that this double bottoms would hold is that the stock has given bullish engulfing candlestick pattern. Thus at least a near term reversal can be expected from the stock. The stock is also showing positive divergence on RSI. The stock can be bought for the targets of and stop loss can be placed at

8 STOCKS IN FOCUS BANK OF INDIA BSE Code: NSE Symbol: BANKINDIA P/E : 7.27 ISIN Demat: INE084A01016 Div & Yield %: 1.96 EPS : Book Value: Market Cap (Rs Cr.): Face Value : 10 Recommendation : BUY Last Close : Targets : Stop loss: 319 (on closing basis) Bank of India, after a correction, has come to take support on a downward sloping trendline. This trendline, which was earlier a resistance is now acting as a support to the stock. On daily charts, the stock has given a bullish engulfing pattern, which has come after a clear downtrend and at supports. The stock can be bought for the targets of Stop loss can be placed at 319 (on closing basis). 8

9 STOCKS IN FOCUS BOMBAY DYEING & MANUFACTURING CO. LTD BSE Code: NSE Symbol: BOMDYEING P/E : 0 ISIN Demat: INE032A01015 Div & Yield %: 0.68 EPS : 0 Book Value: Market Cap (Rs Cr.): Face Value : 10 Recommendation : BUY ABOVE 504 Last Close : Targets : Stop loss: 475 (on closing basis) Bombay Dyeing is currently trading at trendline support. And here it has given a hammer candlestick pattern suggesting bullish reversal. The volume activity in the recent past suggests that there was strong buying interest. The stock can be bought above 504 for the target of A strict stop loss is required for this stock at 475 because below this level it could face sharp downside. 9

10 STOCKS IN FOCUS DECCAN CHRONICLE HOLDINGS LTD BSE Code: NSE Symbol: DCHL P/E : ISIN Demat: INE137G01027 Div & Yield %: 0 EPS : 0.38 Book Value: Market Cap (Rs Cr.): Face Value : 2 Recommendation : BUY ABOVE Last Close : Targets : Stop loss: (on closing basis) Deccan Chronicle Holdings has recently made double bottom. Double bottom is a pattern where price reach the same level twice and bounce back. After making double bottoms the stock is making higher tops and higher bottoms, thus confirming the bullish reversal. Further the stock has given an inverted hammer pattern which is a bullish reversal sign. The stock can be bought above for the targets of and stop loss can be placed at (on closing basis). 10

11 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 :577, 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. 11

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