Stocks on the move Scrip IDi I-Direct tcode Action Target Stoploss Sterlite Technologies STETEC Buy in the range of 100.00-102.00 118.00 91.50 Time Frame: 3 Months Research Analysts Dharmesh Shah Pabitro Mukherjee dharmesh.shah@icicisecurities.com pabitro.mukherjee@icicisecurities.com January 5, 2017 Performance Summary: Year till date Total Recommendations 132 Positive Recommendations 97 Open Recommendations 4 Closed at cost 6 Average yield on Positive recommendations 12% Average yield on Negative recommendations -6% Strike Rate 80%
Sterlite Allahabad Technologies Bank (ALLBAN): (STEOPT): Down Breakout trend from line a triangular breakout pattern after base formation CMP: 102.00 00 Buying Range: 100.00-102.00 102 Target: 118.00 Stop loss: 91.50 The share price of Sterlite Technologies has registered a breakout from short term triangular consolidation pattern signalling conclusion of the secondary consolidation and resumption of upward momentum in the stock. We believe the stock offers a good entry opportunity with a favourable risk/reward ratio to ride the next up move Weekly Candlesticks Bar Chart Chart Triangular consolidation breakout provides the thrust for continuation of upward momentum towards the upper band of medium term rising channel 123.6% retracement of the previous decline @ 118 113 Thestockremainsinasteadyuptrendasitisforming higher highs and higher lows on the weekly scale. Pictorially, the entire up move since mid of 2014 till date has occurred in a well defined Rising Channel as highlighted in the adjoining weekly price chart. It indicates a well structured uptrend implying sustained buying at elevated levels and at regular intervals. In the entire up move since 2014 the long term 52 week EMA has acted as strong intermediate support as the stock has formed a higher base around the 52 weeks EMA on multiple l occasions over the last two years. The current placement of 52 week EMA around 88 levels makes this a key value area for the stock 20 59 39 88 56 74 52 Weeks EMA Among oscillators, the weekly 14 period s RSI is consolidating above its bull market support base of 50 and supports continuation of the positive bias in price Based on aforementioned observations, we believe that the breakout past the triangular consolidation pattern will provide necessary thrust for a continuance of the upward momentum and test 118 levels in the short term being the 123.6% retracement of the immediate decline from 112 to 87 which also coincides with the upper band of the medium term rising channel Source: Bloomberg, ICICIdirect.com Research RSI is consolidating above the bull market support reading of 50 * Call has been initiated on I Click to Gain on January 05, 2017 at 12:00 hrs
Strategy Follow up Open Recommendations: Rec. Date Scrip Name Rec Price Target Stoploss CMP % Return till date 25-Nov-16 Wipro 457 530 415 481 5.3 30-Nov-16 KEC International 142.5 165 130 146 2.7 30-Nov-16 Larsen & Toubro 1380 1550 1290 1391 0.8 4-Jan-17 GSFC 101 117 92 106 5.0 3
Deal Product Team highlights At Your Service The key objective of this product is to provide multiple actionable stock ideas providing decent return potential from a medium term perspective. The report would highlight interesting chart patterns using various technical parameters. Consequently, we would formulate requisite trading strategies to ride the possible future price action Return objective 7 to 10% in Large Caps & 10 to 15% in Midcaps Time horizon 3 months Frequency of report Based on opportunity and suitable risk/reward ratio 4
Notes It is recommended to enter in a staggered manner 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. The recommendations are valid for three months and 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 e 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 Dil Calls Cll product carries 3 to 4 intraday recommendations. It is advisable to allocate equal amount to each recommendation 5
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 Month 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 25% and above 6 Months Cash 10% - 100% 6
Pankaj Pandey Head Research pankaj.pandey@icicisecurities.com ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC Andheri (East) Mumbai 400 093 research@icicidirect.com 7
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 thatt 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 Sebi registered Research Analyst having registration no. INH000000990. 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 is a wholly-owned 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 www.icicibank.com. 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 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 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 a 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. This report is 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. This report 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. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat recipients as customers by virtue of their receiving this report. Nothing in this report 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 in this report 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. 8
Disclaimer ICICI Securities accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. 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. 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 report 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 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 Dagha, Nitin Kunte, Pabitro Mukherjee, Vinayak Parmar 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 g 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. 9