Momentum Picks Open recommendations 18-Oct-19 Nifty NIFTY …

MOMENTUM PICK

Momentum Picks

New recommendations

Date

Scrip

25-Oct-19

Nifty

25-Oct-19

Apollo Hospital

25-Oct-19

Dabur India

25-Oct-19

Lemon tree

I-Direct Code NIFTY

APOHOS DABIND LEMTRE

Action Buy Buy Buy Buy

Initiation Range 11560-11580

1536.00-1542.00 470.00-471.00 57.50-58.50

Target 11596.0/11622.0 1551.80/1564.0 474.70/479.10

65.00

Stoploss 11,544.00 1,526.20

466.40 55.00

Duration Intraday Intraday Intraday 14 Days

Open recommendations

Date

Scrip

I-Direct Code Action

Initiation Range

23-Oct-19

VIP Industries

VIPIND

Buy

475.00-483.00

Intraday recommendations are for current month futures. Positional recommendations are in cash segment

Target 527

Stoploss 456.00

Duration 14 Days

Open Recommendations

Gladiator Stocks

Pfizer PVR KEC

Buy Buy Buy Duration: 6 Months

Click here to know more...

ICICI Securities ? Retail Equity Research

Research Analysts

Dharmesh Shah dharmesh.shah@

Pabitro Mukherjee pabitro.mukherjee@

Nitin Kunte, CMT nitin.kunte@

Vinayak Parmar vinayak.parmar@

October 25, 2019

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Ninad Tamhanekar, CMT ninad.tamhanekar@

NSE (Nifty): 11583

Technical Outlook

Day that was... Equity benchmarks extended their breather over a third consecutive session as the Nifty lost 22 points to end at 11583.

Technical Outlook ? The price action formed a small bear candle, indicating an

extended breather post a sharp rally (~625 points) seen over past two weeks ? We expect the index to consolidate (11700-11500) amid positive bias post a sharp up move of ~10% that would set the stage to head towards psychological mark of 12000 in coming weeks as it is the Union Budget session high (11982). Over the past three months, the index has encountered resistance from 11700, indicating immediate hurdle. Therefore, we believe that after a couple of days breather the index would resolve out of 11700 mark, leading an acceleration of upward momentum. Else, there would be extended breather that would help the stochastic oscillator to cool off the overbought situation (at 61) ? As discussed in the last edition, we believe the ongoing breather should not be suspected as weakness. Instead, any dip towards 11500 range should be capitalised on as an incremental buying opportunity as we do not foresee the index breaching the upward sloping trend line placed at 11500 ? In the coming session, we expect Nifty futures to hold last session's low (11557). Hence, dip towards 11560-11580 should be used to create intraday long position in Nifty futures for 11620

Structurally, the falling trend line breakout indicates termination of secondary corrective phase. We believe the past four week's healthy consolidation post faster retracement (witnessed after corporate tax cut), signifies robust price structure, auguring well for acceleration of upward momentum towards 12000 in coming weeks. This structural improvement makes us confident on upgrading support base @ 11500-11400 as it is 38.2% retracement of current up move (11714 ? 11090), at 11475.

Nifty midcap index witnessed follow through strength to last week's sharp up move, indicating relative outperformance, as the Nifty has already rallied (~625 points), whereas Nifty midcap index has formed a higher base and witnessed buying demand from 80% retracement of August-September rally. The index has already recorded a structural turnaround in the 21st month of correction (key Fibonacci number) that signifies medium term bottom is in place. Price/time maturity of correction offers a favourable riskreward setup. Hence, we advise investors to accumulate quality Smouidrccea:pBslotoomrbiedreg,tIhCeICnI DeixretclteRgesoefaurcph move.

NSE Nifty Daily Candlestick Chart

Open

High

Low

Close

11661.65 11679.60 11534.65 11582.60

ICICI Securities Ltd. | Retail Equity Research

Domestic Indices

Indices

Close 1 Day Chg 1 Day % Chg

SENSEX Index 39020.39 -38.44

-0.10

NIFTY Index 11582.60 -21.50

-0.19

Nifty Futures 11611.15 -13.55

-0.12

BSE500 Index 14978.50 -38.11

-0.25

Midcap Index 16574.70 -56.51

-0.39

Small cap Index 13204.31 -18.75

-0.14

SGX Nifty

11593.00 -18.15

-0.26

* SGX Nifty at 7:30 am

Nifty Technical Picture

Intraday

Trend

Support

11538-11500

Resistance 11620-11650

20 day EMA

200 day EMA

Short term

11400 12000 11411 11242

Nify Future Intraday Recommendation

Action

Buy

Price Range

11560-11580

Target

11596.0/11622.0

Stoploss

11544.00

Sectors in focus (For the Day):

Positive Bias: Consumption, Banks, Capital Goods, Auto Neutral: Telecom

2

ICICI Securities ? Retail Equity Research

MMoOmeMnEtNuTmUPiMcPkIsCK

Bank Nifty: 29108

Technical Outlook

The Bank Nifty snapped a four session winning streak and ended down more than 1% on Thursday. The profit booking was broad based as 11 out of the 12 index constituents ended in the red. The Bank Nifty ended the session at 29108, down by 351 points or 1.2%.

Technical Outlook ? The price action formed a bear candle with a higher high and

lower low signalling a breather after a 2000 points rally seen over the past two weeks ? We believe the index is undergoing healthy consolidation amid stock specific action, aiding the stochastic oscillator to cool off the overbought situation (at 74). Going ahead, we do not foresee the index breaching the upward sloping trend line at 28500. Hence, any dip from here on should be utilised to accumulate quality stocks amid Q2FY20 earning session ? Banking stocks have recently seen a broad based rally with participation across PSU and private banking stocks signalling strength. Going ahead, we reiterate our positive stance so the current breather should be used as an incremental buying opportunity for up move towards our target to 30100 in coming weeks as it is the 80% retracement of the recent decline (30801-27569) ? In the coming session, Bank Nifty futures are expected to open on a flat to negative note on back of mixes Asian cues. Short term bias continues to remain positive so intraday dips towards the 200 days SMA should be used for intraday long position in the range of 28920?28960 for target of 29110 with a stoploss of 28854

Bank Nifty Index ? Daily Candlestick Chart

Open

High

Low

Close

29604.35 31783

29693.25

28994.20

29107.95

30801

27568 26643 The daily stochastic cooling off from the overbought territory

Structurally, formation of higher high-low post breakout from falling trend line signifies resumption of primary up trend amid elevated buying demand that makes us confident on upgrading the support base to 28500-28600 as it is confluence of: 50% retracement of current up move (27569?29690 trend line support joining the lows of September (26643) and

October (27568) is also placed at 28500 levels

Source: Bloomberg, ICICI Direct Research

October 25, 2019

ICICI Securities Ltd. | Retail Equity Research

Nifty Bank daily change

Indices Nifty Bank

Close 29107.95

Change Change%

-351.65

-1.19

Nifty Bank Technical Picture

Intraday

Trend

Support

28950-28820

Resistance 29180-29350

20 day EMA

Short term

28600 30100 28740

200 day EMA

28559

Nifty Bank vs. Nifty

2.69 2.65 2.61 2.57 2.53 2.49 2.45 2.41 2.37 2.33 2.29 2.25

25-Apr

25-Jun

25-Aug

Ratio

Nifty

12100 11700 11300 10900 10500 10100 9700

3

ICICI Securities ? Retail Equity Research

MOMENTUM PICK

Stock Picks

Duration: Intraday

Apollo Hospital (APOHOS) ? Daily Candlestick Chart Price remains in uptrend forming higher high suggest further northward journey in coming sessions

89 day EMA 14 period RSI in rising trajectory suggest positive bias

Dabur India (DABIND) ? Daily Candlestick Chart

Price consolidation after recent up move suggest further upsides in coming sessions

14 period RSI in rising trajectory suggest bullish bias

89 day EMA

Source: Bloomberg, ICICI Direct Research

October 25, 2019

ICICI Securities Ltd. | Retail Equity Research

Technical Observations

CMP

1539.00

Action

Buy

Rationale

Price remains in uptrend forming higher high & RSI in buy mode

Initiation Range Target Stop Loss

1536.00-1542.00 1551.80/1564.0

1526.20

Technical Observations

CMP

471.15

Action

Buy

Rationale

Price consolidation after recent upmove & RSI in buy mode

Initiation Range Target

Stop Loss

470.00-471.00 474.70/479.10

466.40

4

ICICI Securities ? Retail Equity Research

MOMENTUM PICK

MOMENTUM PICK

Stock Picks

Buy Lemon Tree Hotels (LEMTRE) in the range of 57.50-58.50

Daily Bar Chart

89 86

Target: 65.00

Duration: 14 days

Stop Loss: 55.00

A falling channel breakout and price closed above the 50 days EMA signalling strength and offers fresh entry opportunity

71

70

50 days EMA

Target

@ 65

55

47 MACD is sustaining in positive territory and has generated a bullish crossover thus supports the positive bias

Recommendation initiated on i-click to gain at 11:37 on October 24, 2019

Technical Observations

? The stock has registered a breakout above the falling channel containing the entire decline from the March 2019 high (| 89) the breakout was supported by strong volume signalling reversal of the corrective trend and offers fresh entry opportunity

? The share price in the process has also registered a breakout above the 50 days EMA (| 57), which has acted as stiff resistance for the stock as can be seen in the adjacent chart signalling strength and resumption of the up move

? The low of the last three weeks are almost identical around | 55 levels. It is likely to act as short term support for the stocks

? The daily MACD is sustaining in positive territory and has generated a bullish crossover thus supports the positive bias in the stock

? We expect it to maintain positive bias and head towards | 65 levels as it is the 61.8% retracement of the previous decline (| 70 to 55)

ICICI Securities ? Retail Equity Research

Source: Bloomberg, ICICI Direct Research

October 25, 2019

ICICI Securities Ltd. | Retail Equity Research

5

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