Emkay: Trading Today

[Rajesh Desai]

Trading Today (January 30, 2013)

From Our Technical Desk From The Dealing Desk Market Outlook: Nifty extended intraday losses after finding resistance at the high of the day and closed below the psychological mark of 6050 on Tuesday. It seems traders chose to take some profits off the table after the Reserve Bank of India cut the repo rate by 25 bps to 7.75 percent and the cash reserve ratio by 25 bps to 4 percent. In fact, there was so much resistance and subsequent selling pressure, that prices were able to close the day lower than the open forming a Shooting Star candle, signaling bearishness. Final closing for the index came at 6049.90 down 24.90 points with an intraday range 6111.80-6042.45. Bank of Baroda -2.89 %, Hindalco Industries -2.87 %, Bajaj Auto -2.79 %, HDFC Bank -2.65 % and Bharti Airtel -2.36 % were among the top index losers. The breadth of the market too was negative with 531 gainers and 958 losers. Nifty: Shooting Star is an extremely helpful candlestick pattern to help traders visually see where resistance and supply is located. After an uptrend, the Shooting Star pattern can signal to traders that the uptrend could be over and that long positions should probably be reduced or completely exited. However, in technicals there is a rule-of-thumb which says that other indicators should be used in conjunction with the Shooting Star candlestick pattern to confirm the sell signals. So here we will prefer waiting a day or two before calling it a top and will see if prices continued falling resulting in the break of upward sloping trendline that is overlapping the 20 DMA (both packed at 5998). “Stay bullish until then.” Support: Major support level 5998. Investment Ideas SUN Pharma @ Rs. 712 (Target Price: Rs. 800) Trading Ideas Positive bias - Sun Pharma (Target 770), JM Financial (Target 26), RCOM (Target 95), Tv18 (Target 38) and Ranbaxy (Target 510). Traders maintain stop loss accordingly. Statistical Data Derivatives Update Advance Decline Ratio Sector updates Exchange Volumes Implied Volatility for ATM Options Put Call Ratio for (Open Interest) FII - MF Activity World Markets Currency Click here to read report: Trading Today

Thanks & Regards, Emkay Equity Advisory | Emkay Global Financial Services Ltd. | www.emkayglobal.com 7th Floor, The Ruby, Senapati Bapat Marg, Dadar (W), Mumbai– 400 028| Board No.: +91-22-66121212 | Fax : +91 22-6612 1299

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CA. Rajesh Desai

[Rajesh Desai]

Trading Today (January 29, 2013)

From Our Technical Desk From The Dealing Desk

Market Outlook: Nifty ended flat led by gains in auto and realty. The index ended at 6,074.80, down 1.15 points with a positive market breadth of 788 advances and 689 declines. It touched an intraday high of 6,088.40 and an intraday low of 6,061.40 Nifty: On daily chart the index drifted upward after finding support of 20 DMA and that keeps the hopes 6150 alive, in the short term. Overall trend of the index will continue to be bullish till the time Nifty sees a close below 5998. Moreover, the momentum indicator is neutral and clueless. If one sees the daily chart of Nifty the trendline from the low of December 18 is very much alive, acting as a support every time index sees a drop. So till the time that trendline packed at 5998 is intact, bulls are safe and we will stick to our bullish viewpoint. Support: Major support level 6007. Investment Ideas Sobha developer @ Rs. 422 (Target Price: Rs. 484) Trading Ideas Positive bias - Sun Pharma (Target 770), JM Financial (Target 26) and Ranbaxy (Target 510). Traders maintain stop loss accordingly.

Statistical Data Derivatives Update Advance Decline Ratio Sector updates Exchange Volumes Implied Volatility for ATM Options Put Call Ratio for (Open Interest) FII - MF Activity World Markets Currency Click here to read report: Trading Today

Thanks & Regards, Emkay Equity Advisory | Emkay Global Financial Services Ltd. | www.emkayglobal.com 7th Floor, The Ruby, Senapati Bapat Marg, Dadar (W), Mumbai– 400 028| Board No.: +91-22-66121212 | Fax : +91 22-6612 1299

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CA. Rajesh Desai

[Rajesh Desai]

Trading Today (January 31, 2013)

From Our Technical Desk From The Dealing Desk

Market Outlook: Nifty ended a dull session on a flat-to-positive note as traders chose to square off positions ahead of the January series expiry. Among the sectoral indices, realty, oil & gas and pharmaceuticals ended the day in green, while capital goods, auto and power ended the day in red. Final closing for the index came at 6055.75 up 5.85 points with an intraday range 6072-6044. Nifty: The market opened, had a small trading range, and then closed near the opening price forming an inside bar. Neither bulls nor bears got the upper hand rather it was a neutral trading session. The trade had action but in the end no one won the day and the market closed pretty much where it started. If the dominant trend were still in control, there wouldn't have been a wrestling match for control. Instead, an inside bar showed that the day was almost a wash. Any downside action followed by an inside bar could mean selling pressure is swelling. However, in technicals there is a rule-of-thumb which says that other indicators should be used in conjunction with the inside bar to confirm the sell signals. So here we will prefer waiting for couple of days before calling it a top and will see if prices break the upward sloping trendline that is overlapping the 20 DMA (both packed at 5998). “Stay bullish until then.”

Support: Major support level 5998.

Investment Ideas Prestige Estate @ Rs. 184 (Target Price: Rs. 205) Trading Ideas Positive bias - Sun Pharma (Target 770), JM Financial (Target 26), RCOM (Target 95), Tv18 (Target 38) and Ranbaxy (Target 510). Traders maintain stop loss accordingly.

Statistical Data Derivatives Update Advance Decline Ratio Sector updates Exchange Volumes Implied Volatility for ATM Options Put Call Ratio for (Open Interest) FII - MF Activity World Markets Currency Click here to read report: Trading Today

Thanks & Regards, Emkay Equity Advisory | Emkay Global Financial Services Ltd. | www.emkayglobal.com 7th Floor, The Ruby, Senapati Bapat Marg, Dadar (W), Mumbai– 400 028| Board No.: +91-22-66121212 | Fax : +91 22-6612 1299

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CA. Rajesh Desai