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Technical Pick IOC


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									Technical Picks – Stocks                                                                                           June 09, 2010

Sr. No   Stock                      Current Market   Recommended       Entry Band        Target             Stop         Time Horizon
                                    Price (CMP)      Action                                                 Loss
1.       Indian Oil Corporation        347           Buy               347-337           374 and 388        322          4-6 weeks

1.   Indian Oil Corporation – Buy Indian Oil Corporation between Rs.347 and Rs.337 for sequential targets of Rs.374 and
     Rs.388 in 4-6 weeks. Stop Loss = Rs.322 on closing basis.

Indian Oil was falling in a downward sloping channel since September 2009.The stock has recently breached this channel upwards
and is currently trading decisively above it.

Also, the stock has witnessed faster upward retracement of the previous downmoves on various degrees (as can be seen in the chart
above). This is a positive signal. Also, on Tuesday, the stock formed a ”Long-legged doji” pattern on the daily chart and it could move
higher in the days to come.

The 25-days exponential moving average is acting as a support for Indian Oil (as can be seen in blue in the chart above).

All the oscillators as well as the stochastics on the daily chart have eased out from the overbought level and started to fall. This
correction could give a chance to accumulate the stock over the next few sessions.

Retail Research                                                                                                                   1
On weekly charts, all the oscillators are trading above their respective moving averages as can be seen in the table below, which is a
bullish sign.

Oscillators                                  Current                                       Average
9,19 MACD                                    9.44                                          5.33
14,11 RSI                                    60.69                                         57
10,9 RoC                                     13.34                                         2.67

In the month of April 2010, Indian Oil Corporation formed a “Bullish Hammer” pattern on the monthly chart, which was a bullish sign.
In confirmation to this Bullish Hammer pattern, Indian Oil Corporation witnessed an “Engulfing Line Bull” pattern in May 2010 (as
shown in the chart above).

On the monthly chart given above, the MACD and RSI are trading above their averages, which is a bullish sign.

On the weekly chart shown above, it seems like Indian Oil has formed a Bullish Ascending Triangle and is likely to give an upward
breakout, which is a bullish sign.

We expect Indian Oil to move higher in the coming days and thus recommend a ‘buy” on Indian Oil between Rs.337 and Rs.347 for
sequential targets of Rs.374 and 388 in the next 4-6 weeks. Stop Loss = Rs.322 on closing basis.

Retail Research                                                                                                                  2
                                                  Analyst: Aditi Junnarkar (aditi.junnarkar@hdfcsec.com)

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
stoploss or not give the call at all. Clients could get in touch with the analyst through mail or with the their designated dealers to check about this.

   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
Disclaimer: This document has been prepared by HDFC Securities Limited and is meant for sole use by the recipient and not for circulation. This
document is not to be reported or copied or made available to others. It should not be considered to be taken as an offer to sell or a solicitation to
buy any security. The 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. We may have from time to time positions or options on, and buy and sell securities referred to herein. We may
from time to time solicit from, or perform investment banking, or other services for, any company mentioned in this document. This report is intended
for Retail Clients only and not for any other category of clients, including, but not limited to, Institutional Clients

Retail Research                                                                                                                                                          3

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