Weekly Momentum Stock Pick: Rs.555 Rs.617 Rs.480/445 1-2 Months

August 22, 2015
Weekly momentum stock pick

Stock idea for near term trading perspective
Stock
CESC Ltd
CMP
Rs.555
Recommended Action
SL*
Sell between CMP & Rs.600
Rs.617
Targets
Rs.480/445
Time Horizon
1-2 Months
CESC Ltd:
CESC Ltd weekly timeframe
Current Observation:
Attached weekly timeframe chart of CESC Ltd is indicating a bearish trend, as the stock price declined in the negative
sequence of lower tops and bottoms over the last many weeks.
The recent upward bounce back seems to have completed around the key resistance of 40 week EMA (equals to
200day EMA-green curvy line) and the stock price slipped into sharp decline this week.
We observe a formation of negative candlestick pattern of evening star (three candle bearish reversal pattern)
around the hurdle of moving average around Rs.590.00 levels during this week. This is indicating a lower top
reversal pattern for the stock price and it signals the continuation of weakness is likely for coming weeks.
The stock price has now placed on the edge of showing downside breakout of the initial support of ascending trend
line (brown dashed trend line) around Rs.543 levels and further weakness from here could have a sharp negative
impact on the stock price ahead.
Weekly momentum oscillator like 14 period RSI has been moving within a bearish high low range of around 60-30
levels and recent upmove in weekly RSI has failed to reach the upper area of 60 levels. This is signaling a lack of
strength in the upside momentum of the recent upside rally.
Overall negative chart and momentum pattern is suggesting a sell trade set up in CESC Ltd for near term.
RETAIL RESEARCH
Note:
* Place stoploss as per daily closing basis.
Recommended to stagger buying rather than entering entirely at cmp.
If first target achieved, then revise stoploss to buying price.
Technical Research Analyst: Nagaraj Shetti ([email protected])

RETAIL RESEARCH Tel: (022) 3075 3400 Fax: (022) 2496 5066 Corporate Office
HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East),
Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022) 2496 5066 Website: www.hdfcsec.com Email: [email protected]
Disclosure:
I, Nagaraj S. Shetti, Graduate, 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
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Research Analyst or his/her relative or HDFC Securities Ltd does not have any financial interest in the subject company. Also Research Analyst or his relative or
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date of publication of the Research Report. Further Research Analyst or his relative or HDFC Securities Ltd. or its associate does not have any material conflict of
interest. Any holding in stock No
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RETAIL RESEARCH

Weekly Momentum Stock Pick: Rs.555 Rs.617 Rs.480/445 1-2 Months

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August 22, 2015

Weekly momentum stock pick

Sell between CMP & Rs.600

CESC Ltd weekly timeframe

Technical Research Analyst: Nagaraj Shetti ([email protected])

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