icici direct- technical delivery call dredging corporation of india - apr 01, 2014

8/12/2019 ICICI Direct- Technical Delivery Call Dredging Corporation of India - Apr 01, 2014

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ICICI Securities Ltd. | Retail Equity Research Page 2

Conclusion: Based on the aforementioned technical evidence, we believe the stock has concluded a healthy base formation near an important support area and is ripe for a fresh upward leg. We expect the stock to rally towards itsJanuary 2014 high of | 290 in the medium-term, which also coincides with the 80% retracement of its last down legaround | 285. Therefore, it offers good buying opportunity with favourable reward/risk set up for medium-termplayers.

Exhibit 1: Dredging Corporation of India Daily Bar Chart

Source: Bloomberg, ICICIdirect.com Research

Lack of volumes during the correction and steady rise involume during base formation highlight the positive trend

The stock appears set to resume its uptrend after forming a steady

base above the 61.8% retracement of the August 2013 rally andoffers good buying opportunity from medium term perspective

Multiple positive divergences on RSI during base formation

150

208

290

61.8% retracement @ 215

Base formation at 61.8%retracement support

325

MACD ventures into positive territory above trigger line indicating build up of strength


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ICICI Securities Ltd. | Retail Equity Research Page 4

Recommended product wise trading portfolio allocation

Allocations Return ObjectiveProducts Product wise

allocationMax allocation

in 1 stockNumber of Calls

Frontline Stocks Mid-cap stocksDuration

Daily Calls 8% 2-3% 3-4 Stocks 0.50-1% 2-3% Intraday

Short term Delivery 6% 3-5% 7-10 p.m 4-5% 7-10% Opportunity based

Weekly Calls 8% 3-5% 1-2 Stocks 5-7% 7-10% 1 Week

Weekly Technical 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

Technical Breakout 15% 5-10% 1-2 Stocks 10% and above 15% and above 3-6 Months

Cash in Hand 10% - - - - -

100%


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icici direct- technical delivery call dredging corporation of india - apr 01, 2014

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