Retail Research: Technical Stock Idea

16 Sept 2016
RETAIL RESEARCH
Technical Stock Idea

Stock
United Breweries Ltd
CMP
865
Recommended Action
Buy between 834 and 865
Target
926/995/1100
SL- Closing basis

800
Time Horizon
1-3 Months
United Breweries Limited (UBL) Weekly Chart
United Breweries has been steadily making higher tops and higher bottoms after touching a low of 690 in May 2016. These
levels also correspond to previous major intermediate lows of the stock.
This weeks upmove has led to the stock closing above the recent intermediate highs of 864 and convincingly breaking out of a
downward sloping trend line that has held down the highs of 2015 and early 2016. The breakout was also accompanied with
above average volumes, which indicates that there was significant accumulation.
Technical indicators are currently giving positive signals as the stock trades above the short term (13 day SMA), medium term
(50 day SMA) and long term (200 day EMA) moving averages.
Momentum indicators like the 14-week RSI are in rising mode and not yet overbought. The 14-week RSI also trades above its
9-week EMA, which is a positive signal.
The MACD indicator on the weekly chart has crossed its signal line and is in rising mode, which is encouraging.
We believe the stock has the potential to move higher in the coming weeks and months. We therefore recommend a buy at
CMP and adding more on dips. Our entry levels, along with stop loss and targets have been mentioned above.
RETAIL RESEARCH
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RETAIL RESEARCH
Analyst: Subash Gangadharan ([email protected])

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]
"HDFC Securities Ltd. is a SEBI Registered Research Analyst having registration no. INH000002475."
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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.
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Ltd. or its Associate may have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the 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
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16 Sept 2016

Technical Stock Idea

SL- Closing basis

United Breweries Limited (UBL) Weekly Chart

Analyst: Subash Gangadharan ([email protected])

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