WEEK 26 DATE 20/06/2011 INVESTMENT STRATEGIST AMIT CHHEDA MILAN BAVISHI
MARKET OVERVIEW: Nifty last week traded between 5355 5520 and closed around 5366 after witnessing selling pressure during the last three days of the week. While FIIs were net sellers to the tune of Rs2263 crore, Domestic institutions were buying to the tune of Rs1029 crore, during the entire week. Our view on the market stands positive with a positional stop loss of 5320 on downside. We will witness some resistance at 5620 but once crossed on closing basis we will see Nifty rally to 5678 & 5760 on upside. Overall picture of the markets suggest that Nifty will trade between 5350 and 5760. Most of the stocks are bouncing back from good supports where investors can take advantage to reinvest and traders can take advantage for trading in a channel. In the event Nifty breaks 5320 and fall to lower levels, one needs to take a cautious stand and consider exiting long positions. Nifty Daily Chart Page 2 of 13
STOCKS IN FOCUS PANTALOON RETAIL (INDIA) LTD. Scrip ID : PANTALOONR Group / Index : A / BSE200 Face value : 2.00 Scrip Code : 523574 Industry : Department Stores Pantaloon Retail (India) Ltd has recently made higher top higher bottom formation indicating bullish trend. Pick up in volumes in few days also indicates strength in the rise. Its peers in the Retail sector viz. Shoppers Stop and Trent are trading near all time highs. We recommend buy on Pantaloon Retail with targets of 314 326 339 and stop loss of 279. Pantaloon Retail Daily Chart Page 3 of 13
COROMANDEL INTERNATIONAL LTD. Scrip ID : COROMINTE Group / Index : A / BSE500 Face value : 1.00 Scrip Code : 506395 Industry : Fertilizers Coromandel International ltd is in an uptrend of its own and making higher tops and higher bottom at regular basis. It recently made a double top and is now set to give a breakout over double tops and rally further. We recommend buy the stock if it trades above 338.50 and trade for the targets of 350 363 374-399. We recommend traders to maintain a stop loss of at 323. A double top breakout will lead to a sharper rally and traders can also add positions once there is a breakout of double top at 361 and trade for the targets given. Page 4 of 13
TITAN INDUSTRIES LTD. Scrip ID : TITAN Group / Index : A / BSE200 Face value : 10.00 Scrip Code : 500114 Industry : Other Apparels & Accessories Titan Industries Ltd. is in a long term bull run of its own. Even though the markets are tanking down, Titan has shown strength every passing trading sessions. Although the stock has already rallies a lot and still looks that there is some steam left on upside, traders can participate in the uptrend by buying the stock for the targets of 4738 4967-5140. A strict stop loss at 4350 is must. Titan Daily Chart Page 5 of 13
ASIAN PAINTS LTD. Scrip ID : ASIANPAINT Group / Index : A / BSE100 Face value : 10.00 Scrip Code : 500820 Industry : Furniture,Furnishing,Paints Asian Paints Ltd. is in a long term uptrend. Traders can enter the stock around 3000-3040 for the targets of 3290-3430-3580. Since the stock is trading at all time high, any adverse news in the stock could impact the prices negatively. Hence a strict stop loss at 2920 is must. Asian Paints Daily Chart Page 6 of 13
SHREE RENUKA SUGARS LTD. Scrip ID : RENUKA Group / Index : A / BSE200 Face value : 1.00 Scrip Code : 532670 Industry : Sugar Shree Renuka Sugars Ltd. is in a down trend making lower tops and lower bottoms. It has also broken a long term trendline support. Traders can go short in the stock and take opportunity to make some money in falling markets that supports week stocks like Renuka sugars. Although the downside is limited for the stock but traders can take opportunity and trade for the targets 56 50 45 on downside and maintain a stop loss of 68. Shree Renuka Daily Chart Page 7 of 13
COMMODITIES SILVER MCX Silver gave a breakout on downside last week and then stayed below the trendline on downside. We can see a retesting of trendline in near future but over all bias remains negative with a stop loss of 56300 on upside. Traders can sell on rise with targets of 52500 51260-50040. Trade safe and trade only with the trend. Silver Daily Chart Page 8 of 13
GOLD MCX Gold continues to trade on higher side of the markets where it might take resistance. Gold decisively broke its trendline last week and is now retesting it. The Risk Reward ratio on the long side is not favorable. Comex Gold is also in a narrow zone, where it is forming a triangle (lower highs and higher lows). A breakout on either side will give it a direction. Gold has resistance at 22750 levels and supports at 22200. We recommend all the Gold merchants to stay hedged if they are bullish on Gold and take the benefits from falling markets in their own business. Traders can avoid going Long at current levels where the Risk Reward ratio is not favorable. Gold Daily Chart Page 9 of 13
MCX CRUDE As expected crude witnessing selling pressure in the last week. For the coming week, it would be wise to book profits between 4000-4100 in the short trades as crude is approaching its long term trendline support. It also has a support from the gap, which can limit further downside. Follow our calls during market hours to trade in crude. Crude Weekly Chart Page 10 of 13
MCX COPPER Copper is trading in a tight channel and is in a downtrend. Positional traders can initiate Shorts at around 418 levels with a stop loss of 423 and targets on downside of 410 400-388. A strict stop loss is a must. Copper Daily Chart Page 11 of 13
CURRENCIES USDINR USDINR is trading in a range of 44.1000-46.3500. It s in a sideways movement and expected to stay in sideways for near term. Intraday levels will be updated to all our clients. If you are into exports business and looking to hedge major currencies our team of expert can help you do the same in an organized manner. Take advantage of the same and stay away from the currency risk that arises out of the sharp moves. We will also update our views on major currencies like GBP, EURO & YEN USDINR Daily Chart Page 12 of 13
Created by: Inventure Research Contact : Research Coordinator,,201,Viraj Tower, Near Landmark Building, Western Express Highway, Andheri (East),Mumbai -400 069 Tele: 91-22-39548500 Extension :577, Fax: 91-22-40751535. E-mail: amit.chheda@inventuregrowth.com, website : http://www.inventuregrowth.com/ Notice: This document is prepared by Mr. Amit Chheda, 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. Amit Chheda & 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. Amit Chheda s and 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. Page 13 of 13