Aug 17, 2015

Technical Stock Pick

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Stock Pick
Scrip

CMP

Hind. Petro

880

Recommendation
Sell between CMP to 920*

Stoploss

Targets

Time

947

750 - 700

1-3 Months

Observations
The stock is showing negative bias for the short to medium term; the above weekly chart of Hindustan Petroleum
Corporation Limited is showing bearish evidences as per Japanese candle stick, western technicals and Elliot wave
perspective.
Engulfing Bear candle has been witnessed on weekly (see next page) which is an initial sign of negative development after
a long and consistent rally.
The spotted Engulfing Bear is placed exactly at the key resistance i.e. upper line of the Equi-Distant channel. Price is turning
negative at the key supply zone which indicates that short to medium term top has been formed at 991. Apart from this
price is sliding with five wave decline on hourly chart and Faster downward Retracement has been witnessed in the 1st fall;
all these are significant bearish observations in western technicals and Elliot wave. In larger picture the stock has completed
a major wave e of cycle wave C at 991 and it has started a bearish impulse downward falling leg that could form wave
X which could retrace the last rise.
Traders could sell the stock between CMP to 920 with a stoploss of 947 on closing basis for the targets of 750 700 in 13months.

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Stock Pick

Engulfing Bear candle on weekly chart which is a strong bearish indication as per Japanese candle stick.

Price has closed below 21 day EMA on daily charts which is additional sign of initial weakness.
Key daily oscillators remain in sell mode which could lead to correction in the stock.
KST is continuing with sell signal and Stochastic also signifies the same with negative divergence.

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Money Management:
* When price attains the 1st target, book partial (50%) profit and revise your stop loss on balance shares to cost.
* Short in Far month contract and track the levels in spot. Basically High Risk High Return Call.
* If the trade done in Near month contract then do the rollover if target is not met within the expiry.
st

*Future Trades could be exited in 1 Target.

* If the stock is in your portfolio then do the necessary action based on the above recommendation.
* Dont try this trade recommendation in options segment.

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.

Technical Research Analyst: Gajendra Prabu (gajendra.prabu@hdfcsec.com)

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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: hdfcsecretailresearch@hdfcsec.com
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