1. RETAIL RESEARCH
Observation:
 Week’s action formed a bull candle with reasonable volumes which indicates bulls are resuming their momentum but
on daily chart for the last four days momentum is lacking.
 As per our preferred wave count, index still in the progress of major “wave iii” and it is likely to end any time from
now onwards. Price is testing the patience of bears, and bulls are not giving up. So we are waiting for the price to
reverse and maintaining mildly positive bias towards 7950 - 7970 levels with the trend reversal of 7855.
 After end of this rising leg major “wave iv” could begin and it could slide down towards 7100 mark.
 On weekly chart index has breached the equi distant channel but price has to stay above that channel line for one
more week with strong note. If this happens then some major bullish development could begin and we would consider
the other bullish alternates.
 We waited for a week but no clues are visible, probably by the end of next week we would get a clearer picture of the
market direction and we need more price development.
 As per our preferred wave count, larger trend is still looking weak. The reasons for that is after the new government
took charge Nifty made a new life time high of 7700 in June, then next high is 7808 in July, again one more new high in
July at 7842, now in August Nifty moved above 7900, overall just 200 points gain in last three months and we have
witnessed more than 400 points correction in the same span.
RETAIL RESEARCH
Weekly Nifty and Sector Technicals
August 23, 2014
Nifty Perspective Support Resistance 200 Day EMA Weekly Pick
7913.20 Volatile 7855 - 7780 7950 - 7970 6947 EXIDE IND

2. RETAIL RESEARCH
S&P CNX Nifty Daily
Observation:
 Day’s action formed an indecisive candle with less volume which indicates lack of momentum either side.
Consecutively for last four trading days index has moved in a narrow range and it has been forming some sort of
reversal candles.
 Technically, index is continuing its near term uptrend, and trend reversal has shifted to 7855. Unless we see the
violation of above mentioned levels, index could move sideways or mildly positive toward 7950 - 7970 levels.
 Some time back we discussed about the expanding triangle pattern on daily chart, we said that it has ended at 7841
but it is still unfolding. The prevailing rise is the last leg of the triangle and it has almost reached the 100% projection
level of last leg’s internals.
 If our preferred count is valid then the expected fall should be sharp in nature, whenever it happens, then it means
that index has topped out for medium term.
 Many sectoral indices are in last rising leg and they have attained their minimum targets. We need to wait and watch
either they could reverse or extend further?
 Sectors like BSE Bankex, Mid & Small cap and Auto to be watched carefully for large moves either way.

3. RETAIL RESEARCH
Sector Snap
Positive Sector Negative Sector
Name CMP Resistance Name CMP Support
BSE IT 9948 10100 BSE Metal 12849 12400 – 12330
Observation:
Positive Sector:
 BSE IT daily chart indicates a positive bias for the short term; the index is continuously forming higher tops and higher
bottoms which indicate bulls are in the strong momentum. Also the index is trading above the 21 day EMA which adds
strength to the bulls. And now the trigger of Parabolic SAR has given a new buy signal. Overall the index is heading
toward 10100 levels in the near term.
Negative Sector:
 BSE Metal daily chart is showing negative outlook for the short term. The index is continuously forming lower tops and
lower bottoms which indicate bears are in the strong momentum. Major “wave C” is in the progress and it has attained
the 1st
target of 12400 which is 61.8% projection level of “wave A&B” and now it is again sliding down toward 121400 –
13330 levels in the near term.

4. RETAIL RESEARCH
Weekly Pick
Stock Pick
Exide Industries
CMP : 162.6
Recommendation
Sell : Sell below 161
Stoploss : 172(Close)
Targets : 145 - 137
Time : 2-5 Weeks
Observation
 The stock is showing negative bias for the short term.
 The stock has been forming rising wedge pattern on daily
chart which is the important top reversal pattern.
 Price is more likely to validate the pattern on a fall below 161
which will confirm the breakdown of the rising wedge pattern.
 Over all price formation indicates that price could retrace the
entire rising leg from the low of 99 to 172. Golden retracement
level of 38.2% & 50% levels are placed at 145 – 137 levels
respectively.
 RSI is placed with strong negative divergence.
 Traders could short the stock below 161 with the stoploss of
172 on closing basis for the targets of 145 - 137.

5. RETAIL RESEARCH
Note: Once the market opens for trade, the analyst will review it and decide to give the call through an internal mail/SMS at the same or different levels of entry, target and stop loss or not give
the call at all or give a call in Futures/call/put. Clients could get in touch with the analyst through their designated dealers to check about this.
Analyst: Gajendra Prabu (gajendra.prabu@hdfcsec.com)
HDFC securities Limited, I Think Techno Campus, Building ‘B’, “Alpha”, Office Floor 8, Near Kanjurmarg Station, Opposite
Crompton Greaves, Kanjurmarg (East), Mumbai – 400042, Fax: (022) 30753435
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information contained herein is from sources believed reliable. We do not represent that it is accurate or complete and it should not be relied upon as such.
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