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

MOMENTUM PICK

Momentum Picks

New recommendations

Date

Scrip

1-Mar-21

Nifty

1-Mar-21

NMDC

1-Mar-21

Bata India

I-Direct Code Nifty

NATMIN BATIND

Action Buy Buy Sell

Initiation Range 14635-14660 126.50-127.50

1445.00-1450.00

Target 14697/14747 128.20/129.50 1433.20/1419.00

Stoploss 14597.00 125.80 1461.40

Duration Intraday Intraday Intraday

Open recommendations

Date

Scrip

I-Direct Code

Action

Initiation Range

25-Feb-21

BEML

BEML

Buy

1050-1075

19-Feb-21

Filatex India

FILIND

Buy

65.00-68.00

12-Feb-21

Laurus Labs

LAULAB

Buy

368.00-373.00

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

Target 1185.00

75 406

Stoploss 978.00 62.00 349.00

Duration 14 Days 14 Days 14 Days

Open Recommendations

Gladiator Stocks

Scrip Tata Steel NMDC Teamlease

Action 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@

March 1, 2021

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ICICIdirect Mobile app...

Ninad Tamhanekar, CMT ninad.tamhanekar@

Broader market to extend relative outperformance while Nifty consolidates...

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ICICI Securities ? Retail Equity Research

Technical Outlook

Week that was... Equity benchmarks extended their correction over a second consecutive week amid subdued global cues weighed by rising bond yields. The Nifty ended the week at 14529, down 3%. However, broader markets outperformed as the Nifty midcap and small cap indices rose 0.6% and 0.9%, each. Sectorally, metal, PSU outshone while IT, financials and auto underperformed Technical Outlook ? The weekly price action formed a bear candle carrying lower high-

low, indicating extended profit booking after 13% post Budget rally. Over past 9 sessions index has retraced 50% of preceding 11 sessions sharp up move (13597-15432), at 15514. The slower pace of retracement signifies healthy retracement that helped weekly stochastic to cool-off overbought conditions (placed at 75) ? Going ahead, we believe extended correction from here on would offer an incremental buying opportunity as we do not expect the index to breach the key support threshold of 14300. Hence, any dip from here on should not be construed as negative. Instead it should be capitalised on to accumulate quality large cap stocks as we expect index to consolidate in the broad range of 14900-14300 wherein broader market would continue to outperform ? Sectorally, we expect PSU, Metal, Capital goods and Infra to outperform. On the stock front, quality stocks like Tata Steel, Adani Ports, Elgi Equipments, KSB Pumps, HAL, Amber, Tata Chemicals, PNC Infra, Deepak Nitrite are expected to relatively outshine ? We expect ongoing correction to get anchored around 14300 based on following observations: a) Since May 2020, the index has not sustained below its 50 days EMA. That subsequently offered a fresh entry opportunity. Currently, the 50 days EMA coincided with rising trend line drawn adjoining April- Sept low (8055-10790) is placed at 14300 b) Price wise, the index has not corrected for more than 8- 9%. In the current scenario, 8% correction from lifetime highs would be at 14200 c) Time wise, secondary correction has not lasted for more than a week, since May 2020 ? Key point to highlight during the week is that despite extended profit booking in the benchmark broader market continued to outshine as, both Nifty midcap and small cap indices concluded the week with ~1% gain. In the process, Midcap index scaled a fresh all-time high. We expect broader market to endure its relative outperformance, wherein catch up activity would be seen in small caps, as it is still 16% away from its life-time highs In the coming session, Nifty future is likely to witness gap up opening tracking firm Asian cues. We expect, index to trade with a positive bias after bouncing from oversold territory. Hence, use intraday dip towards 14635-14660 to create long position for target of 14747 Source: Bloomberg, Spider, ICICI Direct Research

NSE Nifty DWaeileykClyaCndalnedslteicstkicCkhCarhtart

Open

High

Low

Close

14888.60 14919.45 14467.75 14529.15

We believe extended correction from here on would offer an incremental buying opportunity as we do not expect the index to breach the key support threshold of 14300

Resistance @ 14900 Support @ 14300

Weekly Stochastic cooled off from overbought territory, indicating extended breather

ICICI Securities Ltd. | Retail Equity Research

Domestic Indices

Indices

Close 1 Day Chg

SENSEX Index 49099.99 -1939.32

NIFTY Index 14529.15 -568.20

Nifty Futures 14578.45 -581.00

BSE500 Index 19371.25 -619.40

Midcap Index 19978.65 -355.15

Small cap Index 20155.35 -149.63

SGX Nifty 14740.00 161.55

* SGX Nifty at 7:30 am

% Chg -3.80 -3.76 -3.80 -3.10 -1.75 -0.74 1.11

Nifty Technical Picture

Intraday

Trend

Support

14630-14560

Resistance 14745-14830

20 day EMA

200 day EMA

Short term

14300 14900 14842 12716

Nifty Future Intraday Reco.

Action

Buy

Price Range

14635-14660

Target

14697/14747

Stoploss

14597.00

Sectors in focus ( Week) :

Positive: Metals, PSU, Infra, Capital Goods

2

Bank Nifty: 34803

MOMENTUM PICK

ICICI Securities ? Retail Equity Research

Technical Outlook

Bank Nifty Index ? Weekly Candlestick Chart

The Nifty Bank declined for the second consecutive week and closed down by almost 3% during previous week. The index failed to hold on to the mid weeks gains, as it witnessed sharp selling pressure on Friday's session due to rise in US bond yields. The decline was broad based as both psu and private banking stocks witnessed profit booking. The Bank Nifty closed the week at 34803 down by 1038 points or 2.9%

Technical Outlook

Open 35806.65

High 35902.90

Low 34658.70

Close 34803.60

We do not expect the index to breach the crucial support area of 34000 and buying demand to emerge at lower levels

Resistance @ 36500

Support @ 34000

? The weekly price action formed a bear candle with a long upper

shadow signalling profit booking for a second consecutive week

after more than 25% post Budget rally. Over past nine sessions

index has retraced just 38.2% of preceding 13 sessions sharp up

move (29688-37708), at 34645. The slower pace of retracement

signifies healthy retracement that helped weekly stochastic to

cool off overbought conditions (currently placed at 77)

? Going ahead, we believe extended correction from here on

would offer an incremental buying opportunity as we do not

expect the index to breach the key support threshold of 34000.

Hence, any dip from here on should not be construed as

negative. Instead it should be capitalised on to accumulate

quality banking stocks in a staggered manner.

? The key support threshold of 34000, is the confluence of the

following observations:

a) The 50% retracement of the budget rally (30906-37708) placed

at 34307

b)The price parity with the previous major correction (32842-

29688) as projected from the recent all time high (37708) signals

major support around 34000 levels

? On the higher side the index has immediate resistance at 36500

being the confluence of the Friday's bearish gap area and 61.8% retracement of the of the last two sessions decline (3723234659)

The weekly stochastic is cooling off from the overbought territory

? In the coming session, the index is likely to open on a positive

note on the back of firm Asian cues. volatility would remain high

owing to volatile global cues. We expect the index to trade in a

range and attempt a pullback after last session sharp decline.

Hence after a positive opening use dips towards 34980-35040

for creating intraday long position for the target of 35270,

maintain a stoploss at 34870

Source: Bloomberg, Spider, ICICI Direct Research

March 1, 2021

ICICI Securities Ltd. | Retail Equity Research

Nifty Bank daily change

Indices

Close Change Change%

Nifty Bank 34803.60 -1745.40

-4.78

BankNifty Technical Picture

Intraday

Short term

Trend

Support

34880-34650

34000

Resistance 35250-35400

36500

20 day EMA

35270

200 day EMA

28366

3

Stock Picks

Duration: Intraday

NMDC (NATMIN)? Daily candlestick chart

Price sustaining above its 20 EMA and recent breakout area signaling further upsides in coming sessions

MACD(12,26,9) in rising trajectory suggest positive bias

20 day EMA

Bata India (BATIND)? Daily candlestick chart Short term trend line support breached ,indicating downward momentum in coming sessions

Source: Bloomberg, Spider, ICICI Direct Research

March 1, 2021

Stochastic(5,3,S,3) generated bearish crossover suggest negative bias

ICICI Securities Ltd. | Retail Equity Research

Technical Observations

CMP

126.65

Action

Buy

Rationale

Price sustaining above its 20 EMA and recent breakout area

Initiation Range Target Stop Loss

127.00-128.00 128.80/130.50

126.10

Technical Observations

CMP

1445.30

Action

Sell

Rationale

Initiation Range Target Stop Loss

Short term trend line support breached &stochastic in sell mode

1458.00-1461.00 1447.70/1435.00

1471.60

4

ICICI Securities ? Retail Equity Research

MOMENTUM PICK

MOMENTUM PICK

Stock Picks

Duration: 14 days

Buy BEML Limited (BEML) in the range of 1050.00-1075.00

Target: 1185.00

Weekly Bar Chart

A resolute breakout above last eight weeks range and at the cusp of a breakout above the previous major highs of CY 2019 and CY 2020 indicating a structural turnaround

1035

1070

Stop Loss: 978.00

Target @ 1185 1051

900

Support

738

@ 980

584

370 The weekly MACD is in up trend and is seen diverging from its nine periods average thus validates positive bias

Recommendation initiated on i-click to gain at 10:24 on February 25, 2021

Technical Observations

? The stock has generated a breakout above last eight weeks range (|1051-900) signalling continuation of the primary uptrend and offers fresh entry opportunity

? On the long term chart it is at the cusp of breakout above the previous major highs of CY 2019 and CY 2020 indicating a structural turnaround

? We believe, The stock has immediate support at | 980-990 levels as it is the confluence of the rising 20 days EMA and the 50% retracement of the current up move (| 936 to 1090)

? The weekly MACD is in strong up trend and is seen diverging from its nine periods average thus supports the positive bias

? Based on the above technical observations we expect the stock to extend the current up move and head towards our target of | 1185 levels as it is the measuring implication of the last eight weeks range breakout (| 1051-900) placed around | 1200 levels

ICICI Securities ? Retail Equity Research

Source: Bloomberg, Spider Software, ICICI Direct Research

March 1, 2021

ICICI Securities Ltd. | Retail Equity Research

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