October 01, 2014

Monthly Technical Stock Picks

A medium term trading stock picks

RETAIL RESEARCH
Stocks
Wipro Ltd
Grasim Industries Ltd
IDFC Ltd

CMP
Rs.615.75
Rs.3494
Rs.136.25

Recommended Action
Buy between Rs.615-605
Sell between Rs.3494-3545
Sell between Rs.136-138.50

Target
Rs.685
Rs.3175
Rs.117

Stoploss *
Rs.576
Rs.3662
Rs.146

Time Horizon
3-5 Weeks
2-3 Weeks
2-3 Weeks

* Stoploss as per daily closing basis.

Wipro Ltd (CMP-615.75):

Wipro Ltd -Weekly timeframe

Observation
Attached weekly timeframe chart of IT major Wipro Ltd is indicating an excellent upside breakout of the strong
resistance of around Rs.600 (green horizontal line) and closed above it. This is signaling up thrust of bulls and is
positive for the underlying trend of the stock price.
The stock price has been moving as per larger ascending channel line (brown upward slopping trend lines) and the
price is now showing fresh upmoves from near the lower parallel line. There is a possibility that the stock could
move up from here and it could eventually reach the upper parallel line in the next few weeks.
Weekly momentum oscillator like 14 period RSI has turned up from the key upper area of 60. Previously weekly RSI
has made a peak of around 75-76 levels and such expected upmove of weekly RSI from here to that region could
have a strong positive impact on the price swings.
Positive chart setup and momentum is suggesting a fresh buy in Wipro Ltd.
Grasim Industries Ltd (CMP 3494):

Grasim Industries Ltd -Weekly timeframe

RETAIL RESEARCH

Observation
A fine upmove of Grasim Industries Ltd seems to be over as the stock price has reversed sharply during this week,
after the formation of weekly bearish patterns like high wave and hanging man during later and mid part of Sept14. This could be signaling an end of medium term upmove.
A sharp decline of this week was coincided with the bearish chart pattern of double top (brown horizontal line)
around Rs.3750 levels and with the sharp downside breakout of ascending trend line (green up sloping line) around
Rs.3600 levels. This could be a beginning of a fresh down trend post negative chart/candlestick patterns.
The weekly momentum oscillator like 21 period stochastic has turned down from near its over bought region of
around 90 levels by signaling negative crossover indication. This suggest that the down side momentum is picking up
from here.
Bearish chart pattern and negative momentum is echoing fresh shorting opportunity in Grasim Industries Ltd.
IDFC Ltd (CMP 136.25):

IDFC Ltd -Weekly timeframe

Observation
The financial sector was one of the under performer of this week and IDFC Ltd has been one of the leading
contributor of the sectors underperformance. The stock fell this week by around 4%.
We observe a sharp down side breakout of the multiple supports like ascending trend line and also lower level
consolidation around Rs.141-143 levels (green horizontal and blue ascending trend lines). This is signaling a break of
important uptrend and hints at the continuation of weakness for near term.
The lower levels recovery of last week was not utilized by bulls as the stock price declined further during this week
indicating that bears are actively participating here.
Weekly momentum oscillator like MACD indicator is now signaling a strengthening of downside momentum, as it is
declining by showing negative crossover signal (MACD line cutting below its signal line from near overbought
region).
Overall weak technical setup with negative momentum is indicating selling opportunity in IDFC Ltd for near term.

RETAIL RESEARCH

Analyst: Nagaraj Shetti (nagarajs.shetti@hdfcsec.com)

RETAIL RESEARCH Tel: (022) 3075 3400 Fax: (022) 2496 5066 Corporate Office
HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East),
Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022) 2496 5066 Website: www.hdfcsec.com Email: hdfcsecretailresearch@hdfcsec.com
Disclaimer: This document has been prepared by HDFC Securities Limited and is meant for sole use by the recipient and not for circulation. This document is not
to be reported or copied or made available to others. It should not be considered to be taken as an offer to sell or a solicitation to buy any security. The information
contained herein is from sources believed reliable. We do not represent that it is accurate or complete and it should not be relied upon as such. We may have from
time to time positions or options on, and buy and sell securities referred to herein. We may from time to time solicit from, or perform investment banking, or other
services for, any company mentioned in this document. This report is intended for non-Institutional Clients

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