muhurat picks - sharekhan picks light up your diwali with these sparkling stocks registered office:...

Sharekhan October 28, 20161

Muhurat Picks

Home

Visit us at www.sharekhan.com October 28, 2016

Muhurat PicksLight up your Diwali with these sparkling stocks

Registered Office: Sharekhan Limited, 10th Floor, Beta Building, Lodha iThink Techno Campus, Off. JVLR, Opp. Kanjurmarg Railway Station, Kanjurmarg (East), Mumbai – 400042, Maharashtra. Tel: 022 - 61150000. Sharekhan Ltd.: SEBI Registration details: BSE – INB/INF/INE011073351; NSE – INB/INF/INE231073330; MSEI: INB/INF-261073333, CD - INE261073330; DP-NSDL-IN-DP-NSDL-233-2003; CDSL-IN-DP-CDSL-271-2004; PMS-INP000000662; Mutual Fund-ARN 20669 ; Commodity trading through Sharekhan Commodities Pvt. Ltd.: MCX-10080 ; (MCX/TCM/CORP/0425) ; NCDEX-00132 ; (NCDEX/TCM/CORP/0142) ; NCDEX SPOT-NCDEXSPOT/116/CO/11/20626 ; For any complaints email at [email protected] ; Disclaimer: Client should read the Risk Disclosure Document issued by SEBI & relevant exchanges and Do’s & Don’ts by MCX & NCDEX and the T & C on www.sharekhan.com before investing.

Sunil Hitech Engineers (Sector: Industrial Machinery)

Monthly Chart

2011 A M J J A S O N D 2012 A M J J A S O N D 2013 A M J A S O N D 2014 A M J A S O N D 2015 A M J A S O N D 2016 A M J J A S O D 2017 A M J J A S

0

50MACD (33.3608)

1000020000300004000050000

x100

Volume (4,841,830)

100

200

300

400

500

600

0.0%

23.6%

38.2%

50.0%

61.8%

100.0%

^

_

SUNIL HITECH ENGINEERS (280.000, 468.650, 280.000, 437.200, +160.150)

The stock has taken off from its previous swing high on a primary degree, which means a fresh bull run has started. The move from the lows of August 2013 till August 2015 ie from 35.20 till 352 was clearly an impulse move ie a five-wave rising structure that is marked as Wave 1. Following Wave 1, the stock retraced in a triple zig-zag corrective pattern ie W-X-Y-X-Z. It retraced exactly 61.8% of its previous Wave 1. Moreover, it also reversed from its 51-DEMA (Daily Exponential Moving Average). The momentum indicator MACD has given a positive crossover from the zero reference line, thus confirming a breakout in the stock. The MACD reversing from the zero line indicates that the stock has completed its downtrend and a fresh

uptrend has resumed. The volumes speak for themselves as there has been an incremental rise in volumes, which qualifies this breakout as a price-volume breakout. Therefore, the probability of an upside increases with the same. On the daily chart, the stock has recently formed a “Bullish Hammer” candlestick pattern, which is a good reversal sign and the low of the same is 380, which will act as a very crucial support going forward. On the upside, the minimum target comes to 650, which is ~38.2% of Wave 1. Thereafter, the target is 850, which is 50% length of Wave 1. So, we recommend buying Sunil Hitech Engineers for targets of 650 and 850 with a Stop Loss below the swing low of the Hammer ie at 375 on a closing basis.

Stock Action CMP (Rs)

Target (1) (Rs)

Target (2) (Rs) Stop Loss Risk Reward (1) Risk Reward (2)

Sunil Hitech Engineers Buy 424.35 650 850 375 1:4.57 1:8.65


Muhurat Picks

Home

Thomas Cook (India) (Sector: Hotels, Resorts & Cruise Lines)

Weekly Chart


Target (Rs) Stop Loss Risk Reward

Thomas Cook Buy 216.65 390 165 1:3.35

The stock has given a breakout from the Downward Sloping Trendline with increasing volume. Interestingly, the stock had been falling on lower volume prior to the breakout. The conservative counts for Thomas Cook (India) say that the stock has completed Wave (A) and Wave (B), and Wave (5) of (C) has possibly started. In Wave (C), Wave (2) retraced 61.8% of Wave (1). Wave (3) was extended and was more than 261.8% of Wave (1). Wave (4) has retraced 38.2% of Wave (3). As per the Elliot Wave Theory, Wave (5) is usually equal to Wave (1). Considering that, the target for Thomas Cook (India) comes to 390. Weekly MACD has given a positive crossover, which has bullish implications. The stock has taken support at 50-WMA and has started rising. Given that the stock has formed an impulse from 165, we recommend buying the stock for a target of 390 with a Stop Loss of 165 (closing basis).

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

500010000150002000025000300003500040000450005000055000

x1000

Volume (1,079,377)

50

100

150

200

250

300

350

400

450

(A)/(I)

(B)/(II)

(1)

(2)

(3)

(4)

THOMAS COOK (I) (214.000, 222.000, 213.000, 216.650, +1.79999)

-10

-5

0

5

10

15

20MACD (3.54001)

IFB Industries (Sector: Household appliances)

The stock has recently provided a break-out from the falling trendline resistance. Hence, the correction seems to be over. The move from the lows of 38.65 to 700 was clearly an impulse ie a five-wave rising structure, which is marked as Wave (III). The retracement was 61.8% of its previous move, which is the characteristic of Wave 2 but on a conservative side it is considered as Wave 4 of 3. The momentum indicator has also confirmed an upward breakout. The momentum indicator KST has given a positive crossover from the zero reference line, thus confirming a breakout in the stock. On the upside, the minimum target comes to 933, which is ~23.6% of Wave 1. Thereafter the target comes to 1321, which is 38.2% length of Wave 1. So, we recommend buying IFB Industries for targets of 933 and 1321 with a Stop Loss below 362 on a closing basis.

Monthly Chart


Target (1) (Rs)


IFB Industries Buy 526.45 933 1,321 362 1:2.47 1:4.83


Muhurat Picks

Home

Suven Life Sciences (Sector: Pharmaceuticals)

Weekly Chart


Target (1) (Rs)


Suven Life Sciences Buy 190 338 460 144 1:3.21 1:5.87

Greaves Cotton (Sector: Industrial Machinery)

Quarterly Chart


Target (1) (Rs)


Greaves Cotton Buy 137.65 218 335 103.6 1:2.36 1:4.00

The stock has completed its corrective mode where it formed a diamond pattern and is on the verge of a breakout. The previous move from the lows of August 2013 till January 2015 ie from 54.15 till 159.4 was clearly an impulse move ie a five-wave rising structure that is marked as wave (I) of (III). Following Wave 1, the stock retraced exactly 38.20% of its previous Wave 1. The momentum indicator KST has given a positive crossover from the zero reference line, thus confirming a breakout in the stock. The KST reversing from the zero line indicates that the stock has completed its downtrend and a fresh uptrend has resumed. On the upside, the minimum target comes to 218, which is ~38.2% of Wave 1 and thereafter 355, which is 61.8% length of Wave 1. So, we recommend buying Greaves Cotton for the targets of 218 and 335 with a Stop Loss below the swing low ie 103.6 on a closing basis.

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

5000

10000

15000

20000

25000

30000

x1000

Volume (1,084,117)

50

100

150

200

250

300

350

400

450

(A)/(I)

(B)/(II)

(1)

(2)

(3)

(4)

SUVEN LIFE SCIENCES (200.000, 204.000, 188.800, 190.000, -9.35001)

-20

-10

0

10

20

30MACD (-3.99195)

The stock made a top of 338 in April 2015 but after that it entered a corrective phase. Interestingly, the stock has given an impulse from 144, indicating that the stock has completed the correction phase and is now ready to rise. In 2009, the stock had formed a leading diagonal, which should ideally be marked as Wave (I) but to be on a conservative side, we are assuming it to be Wave (A). The stock completed Wave (A) & (B) wherein Wave (B) retraced ~90% of Wave (A). Currently, we are in Wave (5) of Wave (C) or (III). In Wave (C) or (III), Wave (2) had retraced 50% of Wave (1). Wave (3) was an extended wave and was more than 423.6% of Wave (1). Wave (4) has retraced ~61.8% of Wave (3) and post that, the stock has formed an impulse wave. The weekly momentum indicator is in ‘buy’ mode, which has bullish implications. Also, the impulse move from 144 has come on the back of good volume. Given that Wave (5) generally travels beyond the high of Wave (3), we have an initial target of 338.50 [High of Wave (3)]. However, Wave (5) is generally equal to Wave (1). Therefore, our final target is 460. The Stop Loss (SL) shall be placed at 144, which is the lowest point of the recent impulse move.


Muhurat Picks

Home

RCF (Sector – Fertilizers & Agricultural Chemicals)

Weekly Chart



RCF Buy 48.70 100 35 1:3.6

The stock has seen an impulse move from the bottom of 25. The impulse move can be marked as Wave (I) or (A). The stock has then seen a sharp correction and has retraced 78.6% of the previous rally from 25 to 75. The fall from 75 has been corrective in nature and can be labeled as Wave (II) or (B). The fall has been on thin volumes. However, there was an expansion in volume in the recent upmove ie from the low of 35. The ascent from 35 is possibly the start of Wave (C) or (III), wherein the stock has formed a leading diagonal in Wave (1) of Wave (C) or (III), which has five waves in it. Also, the stock is forming an Inverse Head & Shoulders pattern, wherein a break above 54 (neckline) will confirm the bullish pattern. The stock will gain momentum once it breaks the neckline. The weekly KST has turned positive. The equality target of the previous upmove comes to 100. Hence, we recommend buying the stock for the target of 100 and the Stop Loss shall be placed at 35 (closing basis).

Dec 2013 Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2014 Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2016 Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017

5000

10000

15000

20000

25000

30000

x1000

Volume (6,930,558)

25

30

35

40

45

50

55

60

65

70

75

80

0.0%

23.6%

38.2%

50.0%

61.8%

78.6%

100.0%

RASHTRIYA CHEM (48.4500, 50.8000, 47.9000, 48.4000, +0.25000)

-20-10

010203040506070KST (-0.29497)

PTC India Financial Services (Sector: Financial Services)

Weekly Chart


Target (1) (Rs)


PTC India Finance Buy 38.45 76 106 29.7 1:4.29 1:7.72

The stock in its previous move from the lows of August 2013 till August 2015 ie from 10.7 till 73.15 was clearly an impulse move ie a five-wave rising structure that is marked as Wave 1. After that, it entered a correction mode. The retracement was 61.8% of the previous move, which is generally the characteristic of Wave 2. As per the Elliott Wave Theory, from here on, the next set of impulse is expected to form on upside with the stock breaking out from Triangle as well as multi-month channelised correction. The momentum indicator KST has given a positive crossover from the zero reference line, thus confirming a breakout in the stock. The KST reversing from the zero line indicates that the stock has completed its downtrend and a fresh uptrend has resumed. It is also taking support at 20WSMA & 40WEMA. On the upside, the minimum target comes to 76, which is ~23.6% of Wave 1. Thereafter, the target is 106, which is 38.2% length of Wave 1. So, we recommend buying PTC India Financial for targets of 76 and 106 with a Stop Loss below the swing low ie at 29.7 on a closing basis.


Muhurat Picks

Home

Cera Sanitaryware: (Sector – Construction)

Weekly Chart



Cera Sanitaryware BUY 2561 8800 2100 1:13.5



Corporation Bank BUY 41.50 135 31 1:8.90

The stock is forming a multi-year impulse on the upside. In February 2016 the stock had completed the fourth wave correction that found support near the lower end of the reverse rising channel, which is a long-term channel. Since then the stock has started the fifth leg of the rally. Over the last few months it has formed a multi-month bullish flag pattern, which has broken out on the upside recently. The monthly momentum indicator has completed its correction cycle and given a fresh buy signal.

Corporation Bank (Sector – Banks (Public sector))

Weekly ChartThe stock has witnessed a multi-year correction, which has unfolded in a channelised manner. In terms of wave structure it has formed a complex correction, which got over near the 2009 low, ie Rs31. From there the stock started a fresh rally and formed a leading diagonal to begin with. Thus, it has the potential to form a multi-year double bottom pattern, which is bullish. The monthly momentum indicator has triggered a bullish cross-over.

2007 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

500

1000

1500

2000

2500

3000

35004000

1

2

3

4

CERA SANITARYWARE (2,400.00, 2,718.70, 2,351.00, 2,586.50, +206.650)

0

50

100

150KST (21.4320)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

30

40

50

60

70

80

90

100

110

120

130

140

150

160

170180190

w

x

y

x

z

1

CORPORATION BANK (42.9000, 44.5000, 40.4000, 42.2500, +0.05000)

0

50

KST (-5.43236)


Muhurat Picks

Home

Aarti Drugs (Sector: Pharmaceuticals)

Monthly ChartAarti Drugs has provided a clear break-out from the falling trend line with an increase in its volumes as well as a buy cross-over in its MACD with a strong positive divergence on its weekly charts. This is quite positive for bulls going ahead. On the monthly charts the MACD is showing signs of a reversal from the zero reference line On the quarterly charts, there’s a high probability that with this price volume break-out the wave V up for wave 3 has started. Hence, the minimum target comes to Rs875, which is the previous swing high, and Rs1,492, which is the wave I equality target for wave V.

Schneider Electric infra (Sector: Industrial Manufacturing)

Monthly Chart


Target (1) (Rs)


Schneider Electric infra BUY 157.5 243 293 125 1:2.63 1:4.17

Schneider has provided a break-out from the symmetrical triangle formed in its wave Z, which is the last wave on the downside. Once the wave Z gets over on the downside, the probability of a bottom increases and this has happened in the case of Schneider. Hence, the probability of a bottom in Schneider is quite high. The stock has also provided a break-out from the downtrend line resistance and taken off its previous swing high, thereby violating the lower-top-lower-bottom series. The rise prior to the fall was clearly an impulse formation, ie a five-wave rise, following which we have seen the retracement of the same, ie exactly 61.8% retracement of the previous rise. Hence, the probability of wave 2/B getting over is quite high. Now, the minimum target in the medium term comes Rs242 whereas Rs559 is the quality target of it, ie wave 1 = wave 3. On the lower side, Rs126 seems to be a rock bottom for the stock. The momentum indicator MACD has provided a buy cross-over on the weekly and daily charts. On the monthly charts it still has to provide a buy cross-over, though it’s showing signs of a reversal from the zero reference line.


Target (1) (Rs)


Aarti Drugs BUY 657 875 1492 509 1:1.47 1:5.64

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

50

100

MACD (48.5999)

500

1000

1500

2000

(1)

(2)

1

2

3

4

5AAARTI DRUGS (627.000, 686.450, 624.000, 654.400, +33.4500)

2012 J J A S O N D 2013 A M J J A S O N D 2014 A M J J A S O N D 2015 A M J J A S O N D 2016 A M J J A S O N D 2017 A M J J A SVolume (4,690,187)

05

1015202530MACD (1.16237)

50

100

150

200

250

300

350

400

450

500

550

600

0.0%

23.6%

38.2%

50.0%

61.8%

100.0%

^

_

SCHNEIDER ELECTRIC INFRASTRUCTURE (137.900, 169.850, 137.900, 156.850, +19.3500)


Muhurat Picks

Home

Monsanto (Sector: Fertilizers & Agricultural Chemicals)

Quarterly ChartThe stock has been trending in an Upward Sloping Parallel Channel, which clearly indicates that the larger trend is up. The stock has been forming impulse waves ie a five-wave rising structure in the past, which increases the probability of a medium to long term uptrend. Recently, the stock has provided a breakout from the downtrend line resistance after retracing between 61.8% of the entire rise from 560 to 3755. So, the probability of a Wave 3 of (3) has increased, which is one of the strongest waves of all. The stock has also taken support at its crucial moving average and has reversed from the same, which is again quite positive for the medium to long term. The momentum indicator MACD is well in ‘buy’ mode on the quarterly charts. On the monthly charts, it is reversing from the zero reference line. The volumes too have increased on the downtrend line breakout, which qualifies this as a price-volume breakout. So, the probability of Wave 3 of (3) has increased based on the above mentioned technical evidences. Hence, we recommend buying Monsanto India for targets of 5160 and 9788 with a Stop Loss below its Wave 1 ie at 1519 on a closing basis.


Target (1) (Rs)


Monsanto India Buy 2343.40 5160 9788 1519 1:3.41 1:9.03

Credit Analysis & Research (CARE) (Sector: Financial services)

In its previous rally, the stock had formed an impulse. It retraced exactly 61.8% of its previous Wave 1. The stock has formed an impulse from the end of Wave 2 and is currently in Wave 3 of 3.The Bullish Development in price action has been accompanied by a ‘buy’ signal in the weekly momentum indicator. 20WSMA and 40WEMA are acting as support on downside and any correction in price can be seen as a buying opportunity. On the upside, the minimum target comes to 2195, which is ~78.6% of Wave 1 and thereafter 2700, which is 88.6% length of Wave 1. So, we recommend buying CARE for the targets of 2195 and 2700 with a Stop Loss below the swing high ie at 1149 on a closing basis.

Weekly Chart


Target (1) (Rs)


Care Ratings Buy 1,448 2,195 2,700 1,149 1:2.5 1:4.18


Muhurat Picks

Home

Sectorial synopsis of Diwali picks

Portfolio Risk Reward

Financial Services

Household Appliances

Industrial Machinery

Hotels, Resorts & Cruise Lines

Pharmaceuticals

Fertilizers & Agricultural Chemicals

Construction

Industrial Manufacturing

CMP Target 1 Target 2 Stop Loss

Risk Reward (1) Reward (2)

Risk/Reward

(1)

Risk/Reward

(2)

RCF 48.7 100 - 35 13.7 51.3 - 1:3.7 -

Thomas Cook 216.65 390 - 165 51.65 173.35 - 1:3.4 -

Suven Life Science 190 338 460 144 46 148 270 1:3.2 1:5.9

Cera 2,561.00 8,800.00 - 2,100 461 6,239.00 - 1:13.5 -

Corp Bank 41.5 135 -- 31 10.5 93.5 - 1:8.9 -

PTC India Finace 38.45 76 29.7 8.75 37.55 - 1:4.3 -

IFB Inds 526.45 933 1321 362 164.45 406.55 794.55 1:2.5 1:4.8

Greaves Cotton 137.65 218.00 335 103.60 34.05 80.35 136.35 1:2.35 1:4.00

Sunil Hi-tech Engineers

424.35 650 850 375 49.35 225.65 425.65 1:4.6 1:8.6

Monsanto India 2,343.40 5,160.00 9788 1,519 824.4 2,816.60 7,444.60 1:3.4 1:9.0

CARE Rating 1,448.00 2,195.00 2700 1,149 299 747 1,252.00 1:2.5 1:4.2

Aarti Drugs 657 875 1492 509 148 218 835 1:1.5 1:5.6

Schneider Electric infra

157.5 243 293 125 32.5 85.5 135.5 1:2.6 1:4.2

TOTAL - - - - 2,134.35 11,318.35 11,293.65 1:5.3 1:7.1

The total risk and reward that is generated is based on the assumption that the investor invests in all the 13 stocks equally or exposure to all the 13 scrips is equally weighted.


Muhurat Picks

Home

Last Diwali Synopsis

Stock RECO Reco

PriceAction Target Exit

Price /CMP

Returns 52 Wk High

Returns Re-vised SL

Rane Brake Buy 328.70 Book Profit 643.0 643.0 95.6% - - -

Bannariaman Sugars Buy 1,002.65 Book profit 2,723.0 1,945.0 94.0% - - -

Lumax Auto Technologies Buy 300.45 Stoploss Revised 1,300.0 530.0 76.4% 544.0 81.1% 419.0

Trigyn Technologies Buy 69.90 Stoploss Revised 270.0 115.5 65.2% 140.6 101.1% 100.5

Welspun Buy 742.00 Book Profit 1,185.0 1,185.0 59.7% - - -

Nitin Fire Buy 41.00 Stoploss Triggered 68.0 35.0 -14.6%

Rajesh Exports Buy 718.00 Stoploss Triggered 1,100.0 603.0 -16.0%

Home

For Private Circulation only

To know more about our products and services click here.

Disclaimer

This document has been prepared by Sharekhan Ltd. (SHAREKHAN) and is intended for use only by the person or entity to which it is addressed to. This Document may contain confidential and/or privileged material and is not for any type of circulation and any review, retransmission, or any other use is strictly prohibited. This Document is subject to changes without prior notice. Kindly note that this document is based on technical analysis by 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 on a company’s fundamentals.(Technical specific) This document does not constitute an offer to sell or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Though disseminated to all customers who are due to receive the same, not all customers may receive this report at the same time. SHAREKHAN will not treat recipients as customers by virtue of their receiving this report.

The information contained herein is obtained from publicly available data or other sources believed to be reliable and SHAREKHAN has not independently verified the accuracy and completeness of the said data and hence it should not be relied upon as such. While we would endeavour to update the information herein on reasonable basis, SHAREKHAN, its subsidiaries and associated companies, their directors and employees (“SHAREKHAN and affiliates”) are under no obligation to update or keep the information current. Also, there may be regulatory, compliance, or other reasons that may prevent SHAREKHAN and affiliates from doing so. This document is prepared for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Recipients of this report should also be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The user assumes the entire risk of any use made of this information. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. We do not undertake to advise you as to any change of our views. Affiliates of Sharekhan may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.

This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject SHAREKHAN and affiliates to any registration or licencing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

The analyst certifies that the analyst has not dealt or traded directly or indirectly in securities of the company and that all of the views expressed in this document accurately reflect his or her personal views about the subject company or companies and its or their securities and do not necessarily reflect those of SHAREKHAN. The analyst further certifies that neither he nor his relatives has any direct or indirect financial interest nor have actual or beneficial ownership of 1% or more in the securities of the company nor have any material conflict of interest nor has served as officer, director or employee or engaged in market making activity of the company. Further, the analyst has also not been a part of the team which has managed or co-managed the public offerings of the company and no part of the analyst’s compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this document.

Either SHAREKHAN or its affiliates or its directors or employees / representatives / clients or their relatives may have position(s), make market, act as principal or engage in transactions of purchase or sell of securities, from time to time or may be materially interested in any of the securities or related securities referred to in this report and they may have used the information set forth herein before publication. SHAREKHAN may from time to time solicit from, or perform investment banking, or other services for, any company mentioned herein. Without limiting any of the foregoing, in no event shall SHAREKHAN, any of its affiliates or any third party involved in, or related to, computing or compiling the information have any liability for any damages of any kind.

Compliance Officer: Ms. Namita Amod Godbole; Tel: 022-6115000; For any queries or grievances kindly email [email protected] or contact: [email protected]

http://www.tradingacademy.com/ptwmumbai/default2.aspx?campaignid=70140000000L2Kv&campaigncode=INWB4NA001010CDPEPR_Web_Banner_New

http://www.sharekhan.com/Campaign/campaignlanding/default.aspx?sourceid=39&campid=633

muhurat picks - sharekhan picks light up your diwali with these sparkling stocks registered office:...

Documents