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Momentum Picks
KIC
Open Recommendations P
New recommendations M
Date Scrip I-Direct Code Action Initiation Range Target Stoploss Duration Gladiator Stocks NTU
E
19-Aug-22 Nifty NIFTY Buy 17888-17912 17949/17998 17848.00 Intraday OM
19-Aug-22 Tech Mahindra TECMAH Buy 1102-1106 1115.20/1126.70 1092.40 Intraday Scrip Action M
19-Aug-22 Tata Chemical TATCHE Buy 1115-1119 1128.70/1140.30 1105.60 Intraday Affle Buy
18-Aug-22 BajajElectrical BAJELE Buy 1185-1205 1290 1132.00 14 Days Indian Hotel Buy
18-Aug-22 BHEL BHEL Buy 54-56 62 52.00 14 Days Siemens Buy
18-Aug-22 Voltas VOLTAS Buy 1036-1044 1075 1012.00 03 Days Duration: 3 Months
Open recommendations Click here to know more…
Date Scrip I-Direct Code Action Initiation Range Target Stoploss Duration
17-Aug-22 NTPC NTPC Buy 160-163.5 176.00 151.00 14 Days
17-Aug-22 LTI LTINFO Buy 4890-4960 5370.00 4565.00 30 Days esearch
17-Aug-22 Union bank UNIBAN Buy 40-40.9 44.20 38.50 07 Days y R
17-Aug-22 Granules GRANUL Buy 318-325 338.00 309.00 03 Days
16-Aug-22 Philips Carbon PHICAR Buy 124-128 137.00 121.00 07 Days Equit
12-Aug-22 JSW Steel JSWSTE Buy 671-684 740.00 633.00 30 Days ail
Intraday & Positional recommendations for stocks are in Cash segmnet. Index recommendation is in Future segment Ret
August 19, 2022 –
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Research Analysts I
Dharmesh Shah Nitin Kunte, CMT Ninad Tamhanekar, CMT
dharmesh.shah@icicisecurities.com nitin.kunte@icicisecurities.com ninad.tamhanekar@icicisecurities.com
Pabitro Mukherjee Vinayak Parmar
pabitro.mukherjee@icicisecurities.com vinayak.parmar@icicisecurities.com
Nifty: 17956
NSE Nifty Daily Candlestick Chart Domestic Indices
Technical Outlook NSE Nifty Weekly Candlestick Chart
Daythatwas… Open High Low Close Indices Close 1 Day Chg % Chg K
Equity benchmarks continued to inch northward over an eighth session in a SENSEX Index 60298.00 37.87 0.06 sIC
row. The Nifty ended Thursday’s session at 17956, up 12 points. Market 17898.65 17968.45 17852.05 17956.50 ck P
breadth remained in favour of advances with A/D ratio of 1.2:1. Sectorally, Target NIFTY Index 17956.50 12.25 0.07 PiM
metal, financials, FMCG outshone while IT, auto, pharma took a breather. 18604
TechnicalOutlook Nifty to head @ 18300 Nifty Futures 17980.35 6.25 0.15 umNTU
• The index started the weekly expiry session on a subdued note. towards 18300 in BSE500 Index 24560.74 40.06 0.16 tE
However, buying demand from last session’s low helped it to recoup comingweeks enM
intraday losses and end the session on a flat note. The daily price action Midcap Index 25286.51 104.51 0.42 omO
formed a small bull candle with higher higher-low, indicating Small cap Index 28438.57 95.57 0.34 MM
continuance of upward momentum. Key point to highlight is that, the
NSE Cash turnover has seen improvement by sustaining above its one Support SGX Nifty 17970.00 -10.35 -0.06
months average at | 59000 crore compared to the start of July reading * SGX Nifty at 7:30 am
of | 44000 crore, indicating broad based participation @
• Going ahead, we reiterate our positive stance and expect the Nifty to 17500 Nifty Technical Picture
head towards our revised target to CY22 high of 18350 in coming Intraday Short term
weeks. However, the move towards 18350 would be in a zigzag manner
as past five week’s 13% rally hauled daily and weekly stochastic 12% Trend
oscillator in overbought conditions currently at 97, each. The secondary Support 17890-17840 17500
correction is a norm in a bull market. Hence, a temporary breather at
higher levels should not be construed as negative. Instead, temporary Resistance 17990-18050 18300
breather should be capitalised on as incremental buying opportunity. 16%
Ourconstructive stance is further validated by following observations: 20 day EMA 17138 esearch
• a) Nifty, Nifty midcap indices have registered a bullish golden crossover 200 day EMA 16628 R
(50-day EMA crossing 200-day EMA), Indicating positive development Extension 18% y
from a medium term perspective. Since 2008, in eight out of 10 such of rally Nifty Future Intraday Reco.
instances the Nifty has generated minimum 8% return in subsequent Equit
three to four months b) percentage of stocks above 200 day EMA has Action Buy
risen to 51% against a reading of 30% two weeks back and lowest Weekly RSI rising while sustaining above its ail
reading of 14% at June lows. Sequential improvement in breadth using nineperiod average, indicating positive bias Price Range 17888-17912 Ret
long term indicator signifies broad based participation in rally Target 17949/17998
• Key point to highlight is that, the Nifty midcap and small cap indices –
have logged a resolute breakout from downward slanting channel Stoploss 17848.00 ies
encompassing corrective move since October 2021, January 2022,
respectively, indicating conclusion of corrective bias. This move is Sectors in focus (Intraday) :
supported by significant jump in market breadth as currently 88% Securit
component of Nifty 500 universe is trading above 50 days SMA Positive: PSU, BFSI, IT, Consumption, I
compared to July starting of 24% that augurs well for extension of Capital Goods, Metals, Pharma IC
ongoingrally. C
• Structurally, prolongation of rallies underpinned by improving market I
breadth makes us confident to revise support base at 17500 as it is
61.8% retracement of most recent rally (17161-17968)
• In the coming session Index is likely to open on a flat to negative note
tracking muted global cues. The formation of higher high-low signifies
buying demand at elevated support base. Hence, use intraday dip ICICI Securities Ltd. | Retail Equity Research 2
towards 17888-17912 for creating long position for target of 17998
Source: Bloomberg, Spider, ICICI Direct Research
Revival in sentiment indicator bodes well for next leg of up
move…
Nifty – Monthly Bar Chart • Percentage of stocks above 200 DMA of Nifty 500 universe has recorded extreme low reading of 14 at June low of 15200
• Since 2008 reading below 15 has always lead to a durable bottom in each of the six instances K
• Subsequent rallies in Nifty have measured minimum 20% from lows on each occasion PCI
M
TUN
21% ME
31% MO
31%
24% 25%
• Currently Sentiment indicator has risen to 46% against a reading of 30% two weeks back and lowest reading of 14% at June lows.
43% • Sequential improvement in breadth using long term indicator signifies broad based participation in rally
Nifty 500 – % of stocks above 200 DMA Sentiment indicator
reversed from bearish
extreme with a reading Research
of 14 y
quitE
ail et
R
–
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16 14 13 14
10 8 ISecurit
1 CIC
I
Source: Trading View, ICICI Direct Research 3
Nifty Bank: 39656
Technical Outlook Nifty Bank Index – Weekly Candlestick Chart Nifty Bank daily change
Daythatwas: Open High Low Close Indices Close Change Change% K
The Bank Nifty continued to march northward over eight session in a 39324.40 39703.70 39291.15 39656.15 Nifty Bank 39656.15 194.45 0.49 IC
row to close higher by 0.5% on Thursday. The up move was mainly 41829 Target P
led by the private banking stocks while the PSU banking stocks @ 40000 M
consolidated its recent gains. The Bank Nifty closed the session at 38765 BankNifty Technical Picture TU
39656levels upby194pointsor0.5% Intraday Short term EN
TechnicalOutlook Trend OM
• The daily price action formed a bull candle which maintained Support 39510-39350 38000 M
higher high-low signaling continuation of the positive Resistance 39790-39900 40000
momentum.
• Going ahead, we expect the index to maintain positive bias and 32155 32290 20 day EMA 37486
head towards the psychological mark of 40000 in coming 30405 200 day EMA 35770
sessions being the 80% retracement of entire decline off October Support at
2021toJune2022(41829-32290) 28976 38000
• Bank Nifty has relatively outperformed the benchmark index
during the market correction and the subsequent pullback as can Weexpect index to maintain positive bias and
be seen in the Bank Nifty/Nifty ratio chart. It continues to remain head towards 40000 levels in the coming
in rising trend forming higher high-low and is seen sustaining sessions
above the recent falling supply breakout area joining highs since
January 2021 highlighting strength and continuation of the 52 weeks
outperformance EMA esearch
• Index after a sharp rally of more than 22% in the just eight weeks R
has approached overbought condition in the daily and weekly y
stochastic oscillator (currently placed at a reading of 93 and 97
respectively) indicating possibility of temporary breather at 20405 Equit
higher levels cannot be ruled out. We believe any retracement of ail
the recent up move from here on would make the market healthy WeeklyMACDremaininstronguptrend et
and provides incremental buying opportunity. However, only a R
decisive close below last session low (39291) would lead to a
breather, else continuation of upward momentum –
• The formation of higher high-low on the weekly chart makes us ies
confident to revise the support base higher towards 38000 levels
th Bank Nifty/Nifty ratio chart
as it is the confluence of the 11 August bullish gap area at 38200 Forming higher high-low and sustaining
levels and the 50% retracement of the last four weeks up move above the major trend line breakout area Securit
(36248-39703)placed around38000levels ICI
C
In the coming session index is likely to open on a flat to negative I
note amid soft global cues. We expect the index to trade with
positive bias while maintaining higher high-low. Hence use intraday
dips towards 39430-39500 for creating long position for the target of
39760,maintain a stoploss at 39320
Source: Bloomberg, Spider, ICICI Direct Research ICICI Securities Ltd. | Retail Equity Research 4
August 19, 2022
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