momentum picks open recommendations 19-may-20 kotak...

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Research Analysts

Nitin Kunte, CMT

[email protected]

Vinayak Parmar

[email protected]

Dharmesh Shah

[email protected]

Pabitro Mukherjee

[email protected]

Ninad Tamhanekar, CMT

[email protected]

Momentum Picks

May 19, 2020For Instant stock ideas:

SUBSCRIBE to mobile notification on

ICICIdirect Mobile app…

Open Recommendations

Gladiator Stocks

Click here to know more…

Scrip Action

Larsen & Toubro Buy

Ultratech Cement Buy

Teamlease Services Buy

Duration: 6 Months

New recommendations

Date Scrip I-Direct Code Action Initiation Range Target Stoploss Duration

19-May-20 Nifty Nifty Buy 8915-8950 8983.0 / 9029.00 8886.00 Intraday

19-May-20 Hero Motocorp HERHON Buy 2080-2085 2104.80/2125.00 2061.80 Intraday

19-May-20 Kotak Mahindra Bank KOTMAH Buy 1122.00-1126.00 1134.70/1145 1111.80 Intraday

Open recommendations

Date Scrip I-Direct Code Action Initiation Range Target Stoploss Duration

14-May-20 Radico Khaitan RADKHA Buy 310.00-315.00 343.00 296.00 14 Days

13-May-20 Balmer Lawrie BALLAW Buy 97.00-100.00 115.00 92.00 14 Days

13-May-20 JK Lakshmi Cement JKLAKS Buy 195.00-200.00 220.00 185.00 14 Days

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

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ICICI Securities Ltd. | Retail Equity Research 2

Nifty Technical Picture

Technical Outlook

Source: Bloomberg, Spider, ICICI Direct Research

Mom

entum

Pic

ks

NSE Nifty Daily Candlestick Chart

Positive: Pharma, Auto, Cement,

Energy

Sectors in focus (Intraday):

NSE (Nifty): 8823

NSE Nifty Daily Candlestick Chart

Day that was…

Equity benchmarks started the week on a subdued note and ended

the session at a four week’s low at 8823, down 314 points or 3.4%.

The market breadth remained in favour of declines with A/D ratio

of 1:3.3, indicating underperformance of broader markets.

Sectorally, barring IT, all other sectors ended in the red weighed

by financials, auto and metal.

Technical Outlook

• The price action formed a sizable bear candle carrying a lower

high-low, indicating extended correction, as sell-off accelerated

on breach of last week’s low (9044)

• Past three week’s corrective phase hauled the index to

approach the lower band of consolidation (8800) coincided

with 61.8% retracement of entire April 2020 up move (8055-

9890) at 8756. Key point to highlight during ongoing corrective

phase is that, the index have seen maximum pullback of ~500

points. Currently, as Index is poised at key support threshold of

8800, we believe to turn further constructive on index, it should

record elongated pullback in magnitude compared to earlier

~500 points pullback. Hence we believe, a sustainable move

above 9300 would lead to further acceleration of upward

momentum, else consolidation in the broad range of 9300-

8800 amid stock specific action in the ongoing result season.

• In the coming session, Nifty futures is likely to open on a

positive note tracking firm global cues. As the index is

bouncing after approaching key support threshold of 8800 we

expect positive momentum to continue. Hence, dips towards

8915 – 8950 to create long position for target of 9029

Structurally, during March-April, the index witnessed the longest

pullback (~32%) in magnitude since life-time high of 12430.

During this pullback, we observed that internal rallies have got

elongated (as last rally of 1830 points was larger in magnitude

compared to end of March rally of 1530 points) while internal

correction got arrested after retracing 61.8%. Currently, the index

has retraced almost 61.8% of April 2020 up move (8055-9890),

indicating possibility of supportive efforts at lower levels cannot be

ruled out. Thus, we believe the base formation at lower band of

consolidation (8800) would help weekly stochastic to cool off the

overbought condition (currently placed at 33) formed after 23%

rally during April.

Key support

breakdown

Daily Stochastic approached oversold territory, indicating impending

pullback

9890

As Index is poised at key support

threshold of 8800, we believe to

turn further constructive on index,

it should record elongated pullback

in magnitude compared to earlier

~500 points pullback, else

consolidation in the broad range of

9300-8800 amid stock specific

action in the ongoing result season

7511

12430

Action

Price Range

Target

Stoploss

Nify Future Intraday Recommendation

8886.00

Buy

8983.0 / 9029.00

8915-89508055

Support @8800

Indices Close 1 Day Chg 1 Day % Chg

SENSEX Index 30028.98 -1068.75 -3.44

NIFTY Index 8823.25 -313.60 -3.43

Nifty Futures 8825.85 -311.60 -3.53

BSE500 Index 11499.61 -408.03 -3.43

Midcap Index 11055.17 -445.15 -3.87

Small cap Index 10376.31 -312.55 -2.92

SGX Nifty 9890.00 1064.15 12.06

* SGX Nifty at 7:30 am

Domestic Indices

Open High Low Close

9158.30 9158.30 8806.75 8823.25

~500 Points

pullback

Intraday Short term

Trend

Support 8900-8850 8800

Resistance 9050-9150 9500

20 day EMA 9228

200 day EMA 10747

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Bank Nifty: 17573

May 19, 2020 ICICI Securities Ltd. | Retail Equity Research 3

Nifty Bank daily change Technical Outlook Bank Nifty Index – Weekly Candlestick Chart


The weekly 14 periods RSI is seen consolidating near its nine periods

average indicating continuation of range bound price activity

The Bank Nifty extended decline on Monday as it breached prior

weeks low led by sharp sell off across private and public

banking stocks The index ended at 17573, down 6.7% for the

day.

Technical Outlook

• The weekly price action formed a sizeable bear candle which

carried a lower high-low for third week in a row indicating

accelerated decline after breaching prior week’s low and

continued overhead pressure

• Going ahead, we expect index to continue its

underperformance and extend decline towards 17200- 17000

range, as it is the confluence of (a) 80% retracement of the

entire up move of the last six weeks (16116-21967) placed at

17300 and (b) price parity with the previous major decline

(21462-17144) as projected from the previous week’s high

(21967) signals support around 17650. c) April 2020 low at

17143

• The banking space has been one of the key underperformer

against benchmarks over past few weeks as pull backs

remained short lived while declines are extended. The

ongoing decline has however helped the momentum

oscillators to ease out of overbought conditions. Therefore

sustainability around 17200-17000 range followed by a base

formation would turn the bias constructive for the space

• Upsides are likely to be capped at Monday’s high of 18795

levels

• In the coming session, the index is opening on a positive

note on the back of strong global cues. We expect it to trade

with a positive bias today. Hence, after positive opening use

intraday dip towards 17880-17920 for creating long position

for target of 18090 with a stop loss of 17890

• Among oscillators, the weekly 14 periods RSI is seen

consolidating near its nine periods average indicating

continuance of the current range bound consolidation in the

index in the coming week.

16116

Major support breakdown

21967Index have strong support around 17200 as it

is the confluence of:

- 80% retracement of the entire up move of

the last one months

- price parity with the previous major

decline signalling support around 17650

- April 2020 low at 17143

Support

@ 17200

20530

Open High Low Close

18795.10 18795.10 17514.20 17573.20

Indices Close Change Change%

Nifty Bank 17573.20 -1260.95 -6.69

Intraday Short term

Trend

Support 17750- 17500 17200

Resistance 18150- 18450 18800

20 day EMA 19675

200 day EMA 26479

Nifty Bank Technical Picture

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Stock Picks


Kotak Mahindra Bank (KOTMAH) – Daily candlestick Chart

Hero Motocorp (HERHON) – Daily candlestick Chart


Duration: Intraday

Technical Observations


Price poised at key support of 80% retracement

of last up move (1001-1450), at 1090. Thereby

offering favourable risk reward

Daily Stochastic approaching oversold territory, indicating impending pullback

Stock at key support of rising trend line & sustaining well

above 50 day EMA, indicating robust price structure

Daily MACD is sustaining above its average, indicating positive bias

50 Days EMA

1108

2265

1001

1450

CMP 2069.75

Action Buy

Initiation Range 2080-2085

Target 2104.80/2125.00

Stop Loss 2061.80

Rationale

Stock at key support of rising

trend line & sustaining well

above 50 day EMA, indicating

robust price structure

CMP 1116.85

Action Buy

Initiation

Range

1122.00-1126.00

Target 1134.70/1145

Stop Loss 1111.80

Rationale

Price poised at key support of

80% retracement of last up move

(1001-1450), at 1090. Thereby

offering favourable risk reward

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Buy Radico Khaitan (RADKHA) in the range of 310.00-315.00


Source: Bloomberg, Spider Software, ICICI Direct Research


Stock Picks

Target: 343.00 Stop Loss: 296.00

Duration: 14 days

• The stock is at the cusp of

breakout from the last five weeks

triangular consolidation pattern

signalling reversal of the

corrective trend and offers fresh

entry opportunity

• The stock has already taken 18

sessions to retrace just 38.2% of

the previous 14 sessions up move

| 220-330. A slower retracement

signals a higher base formation

for the stock

• The stock has immediate support

at | 300-296 levels being the

61.8% retracement of the

previous up move (| 280-318) and

the lower band of the last five

weeks triangular consolidation

• Among oscillators, the daily 14

periods RSI is in up trend and is

seen sustaining above its nine

periods average thus supports the

positive bias in the stock

• We expect the stock to maintain

positive bias and head towards |

343 levels being the 123%

external retracement of the last

decline (| 330-280) placed at | 343

levels

Recommendation initiated on i-click to gain at 14:52 on May 14, 2020

The daily 14 periods RSI is in up trend and is seen sustaining above its nine periods average

The stock is at the cusp of breakout from the triangular consolidation pattern

signalling reversal of the corrective trend and offers fresh entry opportunity

439

280

Daily Bar Chart

A slower retracement

signal a higher base

formation for the stock

220

Target @

343

330

Target @

300

Price rise supported by strong volume

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Buy Balmer Lawrie & Co Ltd (BALLAW) in the range of 97.00-100.00




Stock Picks


Duration: 14 days

• The stock has bounced from its 50

days SMA backed by rising

volumes, indicating inherent

strength auguring well for stock to

resolve higher and head towards

115 in coming sessions

• Structurally, over past seventeen

sessions stock retraced merely

50% of preceding fourteen

sessions up move (69 – 115), at

92. Slower pace of retracement

signifies robust price structure.

We believe, the higher base

formation has set the stage to

resolve higher

• The support area of | 92 is based

on the confluence of 50 days SMA

(| 92) and the 50% retracement of

the last up move (| 69 – 115), at

92

• We expect the stock to accelerate

upward momentum and head

towards | 115 levels being the

long term 200 days SMA placed at

|113


The daily 14 periods RSI is logged a bullish crossover, highlighting positive bias

Slower pace of retracement signifies robust price structure, as over past seventeen sessions

stock retraced merely 50% of preceding fourteen sessions up move (69 – 115), at 92

115

Daily Bar Chart

69

The crucial support at | 92:

- 50 Days SMA is placed at |

92

- 50% retracement of the last

up move (| 69-115)

92

Target @

115

50 Days

SMA

200 Days

SMA

Rising Volumes

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Buy JK Lakshmi Cement (JKLAKS) in the range of 195.00-200.00




Stock Picks


Duration: 14 days

• The stock has registered a

breakout above the falling

trendline signalling reversal of the

corrective trend and offers fresh

entry opportunity

• The stock has already taken four

weeks to retrace just 80% of the

previous two week up move |

180-235. A slower retracement

signals a higher base formation

for the stock

• The stock has immediate support

at | 188-185 levels being the 80%

retracement of the previous up

move (| 180-235) and the last four

weeks consolidation low placed

around | 186 levels

• Among oscillators, the daily

MACD in up trend and is

sustaining above its nine periods

average thus supports the positive

bias in the stock

• We expect the stock to maintain

positive bias and head towards |

220 levels being the 80%

retracement of the last four weeks

decline (| 236-186) placed at | 224

levels


The daily MACD in up trend and is sustaining above its nine periods average thus supports the positive bias

The stock has registered a breakout above the falling trendline signalling reversal of

the corrective trend and offers fresh entry opportunity

186

235

Daily Bar Chart

340

A slower retracement signal a higher

base formation for the stock

180

Target @

220

388396

263

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Market Activity Report


Global Equity Market PerformanceGlobal Currency, Commodities and Bond

Advance Decline

Source: Bloomberg, Investing, ICICI Direct Research

0

500

1000

1500

2000

8-May 11-May 12-May 13-May 14-May 15-May 18-May

Advances Declines

Close1 Day %

Change

Currency

USD INR 75.75 0.1

Dollar Index 99.64 0.0

EURO USD 1.09 0.0

GBP USD 1.22 0.2

JPY 107.42 0.1

Swiss Franc 0.97 0.1

Commodities ($)

Gold 1,741.30 0.4

Brent 35.26 -0.6

Copper 5,317.50 2.6

Silver 17.52 0.3

Yield (bps change)

India 106.05 0.00

US 0.71 -4.18

EURO -0.47 2.08

Japan 0.00 0.00

5.2

4.3

5.7

0.0

1.9

2.3

-3.4

3.9

4.7

-4.8 -2.8 -0.8 1.2 3.2 5.2

France

UK

Germany

China

Japan

Hong Kong

India

US

Brazil

% Change

1 Day Change

1 Day Change

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Market Activity Report


Sectoral Indices Performance Fund Flow activity of the last 5 sessions

Source: Bloomberg, ICICI Direct Research

India - Sectoral Close1 Day %

Change

Sensex 30,029.0 -3.4

Nifty 8,823.3 -3.4

BSE Auto 12,310.9 -5.5

Bankex 20,209.8 -6.3

Capital Goods 11,124.7 -4.7

Consumer

Durables17,648.4 -3.7

FMCG 9,985.2 -0.9

Healthcare 14,902.2 -0.9

IT 13,459.7 1.1

Metal 6,078.6 -3.9

Oil & Gas 10,722.7 -4.3

Power 1,397.6 -3.2

Realty 1,278.8 -5.0

BSE 500 11,499.6 -3.4

BSE Midcap

Index11,055.2 -3.9

BSE Small Cap 10,376.3 -2.9

-1,662

-283

-2,153

-2,388-2,513

-3,000

-2,500

-2,000

-1,500

-1,000

-500

0

500

1,000

1,500

2,000

12-May 13-May 14-May 15-May 18-May

Rs C

rore

Date

FII

-364

233

802

1,226

-152

-400

600

1,600

12-May 13-May 14-May 15-May 18-May

Rs C

rore

Date

DII

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Trend Scanner

May 19, 2020 ICICI Securities Ltd. | Retail Equity Research 10Source: Bloomberg, ICICI Direct Research

52 Weeks Low

Negative Trend Universe: NSE 500

Candlestick Pattern

Positive Trend Universe: NSE 500 52 Weeks High

Oversold Stocks

Heat Map

Overbought Stocks

Cipla 600.45 5.29 589.00 17.45

TCS 1945.60 2.78 1887.00 30.6

Bharti Airtel 538.05 -2.90 521.00 31.25

United Spirits 542.60 0.32 521.00 10.8

Tata Consumer 347.10 -1.45 342.00 47.09

Scrip Name Close

Change

%

20-Day

SMA

Delivery

( %)

PVR 745.85 -12.59 942.00 13.76

LIC Housing Finance 220.15 -13.29 264.00 27.2

Bajaj Auto 2477.45 -6.99 2499.00 27.1

Scrip Name Close

Change

%

20-day

SMA

Delivery

(%)

Scrip Name LTP

Alembic pharma 878.9

NDTV 50

Scrip Name LTP

Bank of Baroda 38.6

Inox Leisure 165.4

IOC 71.5

Scrip Name LTP Stochastic

HDFC Life 470 4

IGL 445.4 9

Scrip Name LTP Stochastic

Escorts 812.3 78

Bharti Infratel 207.2 82

Bullish Candlestick Formations Bearish Candlestick Formations

Scrip Name Pattern name LTP Scrip Name Pattern name LTP

Cipla Engulfing 600.5 Apollo Hospital Engulfing 1266.1

TCS Continuation 1940.5 Axis bank Continuation 358.8

Network 18 Morning star 25.2 HDFC Continuation 1518.0

India Cements Continuation 118.0 Mahindra Life Continuation 176.0

Cipla

600

TCS

1,946 Bharti

Infratel

207

Infosys

664

ITC

165

5.3% 2.8% 2.3% 1.8% 0.1%

HCl Tech

511

Vedanta

93

Britannia

3,110

UPL

376

Wipro

182

-0.1% -0.5% -0.5% -0.8% -0.9%

M&M

377

Nestle

16,240

TechM

504 Reliance

Ind.

1,441

HUL

2,005

-1.1% -1.2% -1.3% -1.3% -1.3%

Dr Reddy

3,679 Sun

Pharma

441

NTPC

89

Tata Steel

267 Bharti

Airtel

538

-1.5% -1.8% -2.1% -2.5% -2.9%

Hindalco

115 Power

Grid

155 Asian

Paints

1,501

Titan

817 Grasim

Ind

496

-3.3% -3.3% -3.3% -3.3% -4.3%

ONGC

73 Tata

Motors

81 Adani

Ports

293

IOC

72 Shree

Cement

18,153

-4.3% -4.4% -5.2% -5.2% -5.4%

Bajaj

Finserv

4,465 Kotak

Bank

1,114

GAIL

81 Hero

Moto

2,071 HDFC

Bank

837

-5.5% -5.5% -5.6% -5.6% -5.8%

L&T

813

Coal India

122 JSW

Steel

163

SBI

155 Bajaj

Auto

2,477

-5.9% -6.1% -6.3% -6.7% -7.0%

Bajaj

Finance

1,939

Maruti

4,721

HDFC Ltd

1,512 ICICI

Bank

299

BPCL

294

-7.1% -7.4% -7.5% -7.5% -7.6%

Axis Bank

359

Ultratech

3,308

Eicher

12,988

Zee Ent.

150 Indusind

Bank

377

-7.7% -7.7% -7.9% -9.0% -10.0%

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Intraday Supports and Resistance (Cash)


Scrip Name Trend Close S1 S2 S3 R1 R2 R3

NIFTY 50 Negative 8823.25 8700 8577 8348 9051 9281 9403

S&P BSE SENSEX INDEX Negative 30028.98 29582 29135 28302 30862 31695 32141

NIFTY BANK Negative 17573.2 17127 16680 15846 18408 19242 19689

NIFTY 50 FUTURES Negative 8827.45 8713 8598 8386 9041 9254 9369

NIFTY BANK FUTURES Negative 17589.65 17129 16667 15876 18382 19173 19635

ACC LTD Negative 1134.55 1106 1077 1029 1183 1231 1260

AMBUJA CEMENTS Negative 172.15 168 164 156 179 186 190

ADANI POWER LTD Negative 30.9 31 29 28 34 35 37

ADANI ENTERPRISE Neutral 135.9 132 127 120 144 151 156

ADANI PORTS AND Negative 293.3 287 281 271 303 313 319

ASHOK LEYLAND Negative 43.85 43 40 38 48 50 52

AMARA RAJA BATT Neutral 540.1 525 508 479 570 598 615

APOLLO HOSPITALS Negative 1266.05 1227 1187 1118 1336 1405 1445

ASIAN PAINTS LTD Negative 1501.1 1479 1459 1419 1540 1579 1600

APOLLO TYRES LTD Neutral 91.65 90 88 86 94 96 98

AUROBINDO PHARMA Neutral 669.8 656 641 628 683 697 711

AXIS BANK LTD Negative 358.8 345 330 308 382 404 418

BAJAJ FINANCE LT Negative 1938.6 1879 1819 1711 2046 2153 2213

BATA INDIA LTD Negative 1282.25 1258 1233 1193 1323 1363 1388

BHARTI AIRTEL Neutral 538.05 529 520 505 553 568 577

BHARAT ELECTRON Positive 64.5 62 59 54 70 75 78

BHARAT HEAVY ELE Neutral 26.05 26 24 23 28 30 31

BHARAT FORGE CO Neutral 269.7 260 249 235 285 299 310

BALKRISHNA INDS Negative 920.6 904 888 861 948 974 991

BIOCON LTD Neutral 331.75 325 319 313 337 343 349

BAJAJ AUTO LTD Negative 2477.45 2409 2339 2216 2601 2723 2793

BAJAJ FINSERV LT Negative 4465.45 4365 4264 4077 4653 4840 4941

BANK OF BARODA Negative 38.6 38 37 35 42 43 45

BANK OF INDIA Negative 32 31 30 29 32 34 34

BOSCH LTD Neutral 9070.35 8836 8603 8176 9496 9923 10156

BHARAT PETROL Negative 294.05 283 272 253 312 332 342

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BERGER PAINTS Negative 440.45 435 429 420 450 459 464

BRITANNIA INDS Negative 3109.55 3083 3057 3016 3150 3191 3217

CANARA BANK Negative 77.6 75 72 67 84 88 92

CONTAINER CORP Negative 349.5 334 320 296 373 396 411

CADILA HEALTHCAR Negative 323.95 320 316 308 333 341 345

CENTURY TEXTILE Negative 255.8 248 241 227 269 283 290

CESC LTD Negative 567.05 557 547 535 579 591 601

CHOLAMANDALAM IN Negative 125 115 106 89 142 159 168

CIPLA LTD Positive 600.45 579 558 545 614 627 648

COLGATE PALMOLIV Positive 1380.1 1341 1301 1270 1412 1443 1483

COAL INDIA LTD Negative 121.7 119 117 113 125 129 131

DABUR INDIA LTD Negative 436.1 428 421 412 444 453 460

DIVI LABS LTD Negative 2330.2 2307 2282 2246 2368 2404 2428

DLF LTD Negative 132.45 129 125 120 138 143 147

DR REDDY'S LABS Negative 3679.15 3607 3536 3459 3756 3834 3905

EICHER MOTORS Negative 12988.2 12546 12103 11351 13741 14493 14935

EQUITAS HOLDINGS Negative 44.25 43 40 37 49 52 55

ESCORTS LTD Neutral 810.5 799 786 768 829 846 859

EXIDE INDUS LTD Positive 151.25 150 148 145 156 159 161

FED BANK LTD Negative 39.6 38 37 34 43 45 47

GAIL INDIA LTD Negative 81 79 77 73 86 89 92

GODREJ CONSUMER Negative 537.55 531 525 515 547 557 563

GMR INFRASTRUCTU Neutral 17.45 18 17 17 19 19 20

GLENMARK PHARMA Negative 327.2 321 316 306 336 346 352

GRASIM INDS LTD Negative 495.8 489 481 467 510 523 531

HAVELLS INDIA Negative 475.75 468 461 449 487 499 507

HCL TECH LTD Positive 510.75 505 501 494 517 523 528

HOUSING DEV FIN Negative 1512.05 1466 1421 1335 1598 1683 1729

HDFC BANK LTD Negative 836.65 816 795 759 873 909 929

HERO MOTOCORP LT Negative 2070.55 2014 1958 1855 2172 2274 2330

HINDALCO INDS Neutral 115.35 113 110 106 120 124 126

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HINDUSTAN PETRO Negative 172.5 166 158 146 185 198 205

HINDUSTAN UNILEV Neutral 2005.25 1980 1955 1921 2039 2073 2099

VODAFONE IDEA LT Positive 4.65 5 5 4 5 6 6

IDFC FIRST BANK Negative 19.85 19 19 18 20 21 22

INDRAPRASTHA GAS Negative 445.5 435 425 411 460 475 485

INDIABULLS HOUSI Negative 118.95 114 108 99 129 138 144

INDUSIND BANK Negative 376.75 361 345 317 406 435 451

INTERGLOBE AVIAT Negative 912.25 859 807 764 954 997 1049

INFOSYS LTD Positive 663.9 653 644 636 671 680 689

INDIAN OIL CORP Negative 71.55 70 68 66 75 78 80

ICICI PRUDENTIAL Negative 358.85 350 340 323 377 394 405

ITC LTD Positive 164.75 163 161 159 167 169 171

JINDAL STEEL & P Negative 88.05 84 81 76 93 99 102

JSW STEEL LTD Negative 163.25 158 153 144 172 181 186

JSW ENERGY LTD Neutral 39.55 40 38 38 41 42 43

JUBILANT FOODWOR Negative 1549.9 1490 1431 1332 1648 1747 1806

JUST DIAL LTD Negative 332.45 324 314 302 346 358 367

CUMMINS INDIA Negative 317.5 306 295 279 333 349 360

KOTAK MAHINDRA Negative 1113.65 1090 1067 1024 1156 1199 1222

LIC HOUSING FIN Negative 220.15 207 195 171 243 267 279

LUPIN LTD Neutral 856.85 841 826 815 867 878 892

LARSEN & TOUBRO Negative 813.35 792 771 732 852 891 912

L&T FINANCE HOLD Negative 52.75 51 48 45 56 60 62

MAHANAGAR GAS LT Negative 881.7 869 856 841 898 914 927

MAX FINANCIAL SE Negative 417.75 399 381 355 443 469 487

MANAPPURAM FINAN Negative 121.2 118 115 111 126 131 134

MAHINDRA & MAHIN Negative 377.2 369 360 352 385 392 401

M&M FIN SERVICES Negative 137.8 128 118 99 156 174 184

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MARICO LTD Negative 306.2 300 294 284 316 326 332

MRF LTD Negative 56356.05 55504 54652 53154 57854 59352 60204

MARUTI SUZUKI IN Negative 4720.95 4569 4418 4155 4983 5246 5398

MOTHERSON SUMI Negative 77.85 76 74 70 81 84 86

MINDTREE LTD Positive 879.55 858 835 822 893 905 929

MUTHOOT FINANCE Negative 776.6 756 736 705 808 840 860

NATIONAL ALUMIN Neutral 27.5 27 26 24 29 30 31

NBCC INDIA LTD Negative 17.75 17 17 16 18 19 20

NESTLE INDIA LTD Neutral 16240.35 16077 15913 15664 16490 16739 16903

NIIT TECH LTD Neutral 1344.35 1319 1294 1258 1380 1416 1441

NCC LTD Negative 22.1 22 21 21 24 25 26

NMDC LTD Negative 71.1 69 68 65 74 76 78

NTPC LTD Negative 88.9 88 86 85 90 92 93

OIL INDIA LTD Negative 78.75 69 60 52 87 96 105

OIL & NATURAL GA Negative 72.9 71 69 67 76 79 80

PAGE INDUSTRIES Neutral 17709.35 17212 16714 16293 18131 18552 19050

PIDILITE INDS Negative 1342.65 1324 1304 1278 1370 1396 1416

PIRAMAL ENTERPRI Negative 872.6 845 816 787 903 932 960

PETRONET LNG LTD Negative 219.5 215 210 202 229 237 242

PUNJAB NATL BANK Negative 27.35 27 26 25 29 30 31

POWER FINANCE Negative 81.25 79 78 75 84 86 88

PVR LTD Negative 745.85 708 669 603 813 879 918

POWER GRID CORP Negative 154.5 152 149 145 159 163 166

RBL BANK LTD Negative 109.4 105 101 93 117 125 129

REC LTD Negative 90.55 87 84 79 96 102 105

RELIANCE INDS Positive 1440.75 1418 1396 1364 1472 1504 1526

STEEL AUTHORITY Negative 27.45 26 26 24 29 30 31

STATE BANK IND Negative 155.3 152 148 140 163 170 174

SHRIRAM TRANSPRT Negative 576.15 552 527 481 622 669 693

SIEMENS LTD Negative 997.05 963 929 868 1058 1119 1153

SHREE CEMENT Negative 18152.7 17689 17225 16449 18928 19703 20167

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SRF LTD Negative 3423.2 3350 3277 3157 3543 3663 3736

SUN PHARMA INDU Negative 440.7 431 423 411 452 463 472

SUN TV NETWORK Negative 358.05 347 335 314 381 402 414

TATA STEEL LTD Negative 266.6 260 254 246 274 282 287

TATA CONSULTANCY Positive 1945.6 1895 1843 1814 1976 2005 2057

TECH MAHINDRA LT Negative 504.05 499 494 486 513 521 526

TATA CONSUMER PRODUCT Negative 347.1 342 337 330 355 361 367

TORRENT POWER LT Neutral 296.65 292 287 280 304 311 316

TATA POWER CO Positive 31.3 30 29 28 32 33 34

RAMCO CEMENT/THE Neutral 537.25 518 498 464 573 606 627

TORRENT PHARMA Positive 2497.25 2466 2434 2403 2530 2562 2594

TITAN CO LTD Negative 817.3 803 789 768 838 859 873

TATA CHEMICALS Negative 276.35 268 261 248 288 301 308

TATA MOTORS LTD Negative 80.65 80 77 75 84 87 89

TVS MOTOR CO LTD Negative 305.8 291 278 253 330 355 368

UNITED BREWERIES Negative 880.9 862 843 810 915 948 967

UJJIVAN FINANCIA Negative 153.6 146 140 128 165 177 183

UNITED SPIRITS Neutral 542.6 524 507 485 564 587 604

UPL LTD Negative 375.8 365 356 346 385 394 404

ULTRATECH CEMENT Negative 3307.8 3197 3085 2889 3505 3701 3813

VEDANTA LTD Positive 92.5 90 87 85 96 99 101

VOLTAS LTD Negative 441.55 432 422 406 458 474 483

WIPRO LTD Negative 182.2 179 177 174 184 187 190

YES BANK LTD Negative 27.55 27 26 26 29 30 31

ZEE ENTERTAINMEN Negative 149.5 144 138 127 160 170 176

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Forthcoming Economic Event Calendar


Date Event Date Event

US China

20-May FOMC Meeting Minutes 22-May FX Net Settlement - Clients CNY

28-May GDP Annualized QoQ 27-May Industrial Profits YoY

29-May PCE Deflator MoM 31-May Manufacturing/Non-Manufacturing PMI

29-May Wholesale Inventories MoM

29-May MNI Chicago PMI UK

India 20-May Retail Price Index

29-May Fiscal Deficit INR Crore 28-May Nationwide House PX MoM

31-May GDP Annual Estimate YoY 29-May GfK Consumer Confidence

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Momentum Picks: Strategy Follow up


Duration: Intraday

Date Scrip Idirect Code Strategy Recommended Price Targets SL Gain/Loss % Comment

18-May-20 Nifty Nifty Buy 9070-9105 9133.0 / 9178.00 9043.00 (45 points) stoploss triggered

18-May-20 UltraTech Cement ULTCEM Buy 3580.00-3586.00 3614.80/3647.00 3549.80 - No trade

18-May-20 Asian Paints ASIPAI Buy 1542.00-1548.00 1559.40/1574.00 1529.20 -1.00 stoploss triggered

Duration: Cash Positional

Date Scrip Idirect Code Strategy Recommended Price Targets SL Gain/Loss % Comment

14-May-20 Canara Bank CANBAN Buy 88.00 97.00 80.00 -6.00 Exit at 82.70

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Gladiator Stocks: Open Recommendations


Back to Top

Date Scrip Name Strategy Recommendations Price Target Stoploss Time Frame

13-May-20 Larsen & Toubro Buy 845-870 995.00 790.00 6 Months

13-May-20 Ultratech Cement Buy 3400-3500 3990.00 3190.00 6 Months

13-May-20 Teamlease Services Buy 1535-1570 1890.00 1390.00 6 Months

12-May-20 Zydus Wellness Buy 1240-1270 1460.00 1140.00 6 Months

6-May-20 SBI Life Insurance Buy 715.00-740.00 840.00 665.00 6 Months

5-May-20 Torrent Pharma Buy 2350.00-2435.00 2760.00 2190.00 6 Months

30-Apr-20 City Union Bank Buy 133.00-138.00 165.00 115.00 6 Months

24-Apr-20 Ipca Laboratories Buy 1580.00-1630.00 1885.00 1440.00 6 Months

All the recomedations are in Cash segment

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Price history of last three years

Source: Spider Software, ICICI Direct Research

JK Lakshmi Cement Balmer Lawrie

Radico Khaitan

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Product Guidelines......


• In case of intraday stock recommendations, execute the trade within +/- 0.25% of the recommended range provided in

the report. The stock recommendation has to be execute after the first 5 minutes of trade and only up to 11:00 am. In

case of Nifty future execute after the first 5 minutes of trade and up to 03:00 pm

• In case of positional recommendations, execute the recommendations in the range provided in the report

• Once the recommendation is executed, it is advisable to maintain strict stop loss as provided in the report. For positional

recommendation maintain stop loss on daily closing basis

• We adapt a trading strategy of booking 50% profit when the position is in profit by 4-5% and trail stop loss on remaining

position to the entry point (In case of positional stock recommendations)

• In case of intra day Nifty futures recommendation, once recommendation is activated, consider booking 50% profit near

1st

Target (tolerance of 3 points) and trail stop loss to cost for remaining positions

• If the recommended intra day stock hits the target price before getting activated, then it is considered not initiated

• The Intra day recommendations are valid only for the day and should be squared off by 15:10 hrs. The positional

recommendations are valid only for the prescribed period and are to be squared off at the end of mentioned period

unless communicated otherwise through separate mail or on i-click to gain page

• Only stocks in derivatives segment have been considered for intra day recommendations

• Medium to long-term prospects of a stock does not have any bearing on the intra day view

Trading portfolio allocation

• It is recommended to spread out the trading corpus in a proportionate manner between the various technical research

products

• Please avoid allocating the entire trading corpus to a single stock or a single product segment

• Within each product segment it is advisable to allocate equal amount to each recommendation

• For example: The ‘Momentum Pick’ product carries 2 to 4 intraday recommendations. It is advisable to allocate equal

amount to each recommendation

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May 19, 2020 ICICI Securities Ltd. | Retail Equity Research 21Source: ICICI Direct Research

Recommended product wise trading portfolio allocation

Duration

Momentum Picks-

Intraday

10% 30-50% 2 Stocks 1-2% Intraday

Momentum Picks-

Positional

25% 8-10% 8-10 Per Month 5-8% 14 Days

Yearly Technical 25% 12-15% 7-9 Per Year 20-30% 1 Year

Gladiator Stocks 35% 10-13% 15-20% 6 Months

Cash 5%

-

100%

Number of Calls Return Objective

Product Product wise

allocation

Allocations

Max allocation

In 1 Stock

Opportunity Based

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Candlestick patterns describe the market sentiment for the specified period. Some of the formations suggest reversal of sentiment (trend) and, therefore, are important

for a chart reader. By themselves, the patterns do not carry any price target but only an indication of change in market behaviour. More importance needs to be given

to the placement of the pattern within larger trend

Morning Star: Potential bottom reversal pattern made of three candle lines. The first sizeable black candle reflects a market in which the bears are in complete charge.

The next candle line--the small real body--shows a slight diminution of the bearish force. The white candle that makes up the last part of the morning star visually

displays the bulls are gaining the upper hand. Lowest low amongst three candles becomes technical support

Bullish Engulfing Line: A potential bottom reversal pattern. This pattern typically appears at the culmination of a decline or downtrend. The market falls, and a black

candle forms (ideally a small black candle). Next, a white real body wraps around the prior session’s black body. Low of the pattern becomes short term support for

prices

Piercing Line: Potential bottom reversal pattern. A black body forms in the downtrend. The market continues moving south on the next session’s open but that session

culminates in a white real body that closes (e.g. pierces) than half way or more into the prior black body. Lowest low between two candles is referred to as technical

support for prices

Hammer: A candlestick line which, during a downtrend, has a very long lower shadow and small real body (black or white) at the top end of the session’s range. There

should be no, or a very small, upper shadow. Pattern suggests buying support during declines and needs confirmation in terms of sustainability of prices above head of

the Hammer in following session

Evening Star: Potential Top reversal pattern made of three candle lines. Comparable with a traffic signal. First white candle reflects a market in bullish trend. The next

candle line--the small real body—warns waning momentum. The black candle that completes the evening star visually exhibits that prior up trend has stopped or

reversed

Bearish Engulfing Line: Potential top reversal signal. This two candlestick pattern emerges during a rally. A black candle real body wraps around a white real body

(classically a small white candle) Highest high between two candles becomes resistance level for prices for future reference

Dark Cloud cover: A dark cloud cover forms a top reversal pattern. The first session should be a strong, white real body. The second session’s price opens over the

prior session’s high (or above the prior session’s close). By the end of the second session, it closes near the low of the session and should fall well into the prior

session’s white body. Pattern suggests that market has a poor chance of rising immediately

Shooting Star: A single candlestick line during a rally in which there is a small real body (white or black) at the bottom end of the session's range and a very long

upper shadow. The candle line should also have little or no lower shadow. Pattern suggest the trouble for prices overhead

Continuation Patterns: Other than widely known Candlestick reversal patterns discussed above, there are numerous patterns mentioned in literature on Candlestick

which describe the continuation of existing sentiments i.e. bullish or bearish. We have refrained from mentioning names of these patterns to avoid confusion. However,

the remark Continuation Pattern refers to bullish or bearish candlestick patterns which suggest continuation of existing trend

Candlesticks Glossary


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Pankaj Pandey Head – Research [email protected]

ICICI Direct Research Desk,

ICICI Securities Limited,

1st Floor, Akruti Trade Centre,

Road No 7, MIDC,

Andheri (East)

Mumbai – 400 093

[email protected]


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We /I, Dharmesh Shah, Nitin Kunte, Ninad Tamhanekar, Pabitro Mukherjee, Vinayak Parmar Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the

subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. Analysts are not registered as research analysts by FINRA and are not associated

persons of the ICICI Securities Inc. It is also confirmed that above mentioned Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months and do not serve as an officer, director or employee

of the companies mentioned in the report.

Terms & conditions and other disclosures:

ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities Limited is a SEBI registered Research Analyst with SEBI

Registration Number – INH000000990. ICICI Securities Limited SEBI Registration is INZ000183631 for stock broker. ICICI Securities is a subsidiary of ICICI Bank which is India’s largest private sector bank and has its various subsidiaries engaged in businesses of

housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on www.icicibank.com

ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other business relationship with a significant percentage of

companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.

Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, outstanding positions, trading volume etc as opposed to focusing on a company's fundamentals and, as such, may not match with the

recommendation in fundamental reports. Investors may visit icicidirect.com to view the Fundamental and Technical Research Reports.

Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.

ICICI Securities Limited has two independent equity research groups: Institutional Research and Retail Research. This report has been prepared by the Retail Research. The views and opinions expressed in this document may or may not match or may be contrary

with the views, estimates, rating, target price of the Institutional Research.

The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in

any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities. While we would endeavour to update the information herein on a reasonable basis,

ICICI Securities is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so. Non-rated securities indicate that rating on a particular security has been

suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances.

This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational

purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the

same time. ICICI Securities will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your

specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient.

This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange

rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure

Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice.

ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months.

ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of managing or co-managing public offerings,

corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction.

ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its associates or its analysts did not receive any compensation or other benefits from the companies

mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts and their relatives have any material conflict of interest at the time of publication of this report.

Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.

ICICI Securities or its subsidiaries collectively or Research Analysts or their relatives do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report.

Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies mentioned in this report.

ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.

Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report.

We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities.

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 ICICI Securities and affiliates to any registration or licensing 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.


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