RETAIL RESEARCH
CNX Mid Cap Index Vs. CNX Nifty Index
The ratio chart above plots CNX Mid Cap Index over the CNX Nifty.
As can be seen from the chart, the ratio rose one way in 2009-2010, implying that Mid Cap Index clearly
outperformed the Nifty in that period.
After declining over the next few years, this ratio has once again begun to rise and entered a fresh
uptrend.
With the ratio well below its previous highs, we believe the uptrend is not over for Mid Caps.
This report highlights some Mid Cap stocks that are looking attractive on a technical basis and that can
be accumulated for the intermediate to long term. Entry can be staggered in cases where the stock
prices have risen lately. Though some intermediate corrections can be seen on the way to the targets
mentioned, investors are well advised to keep a stoploss on individual stocks or on group of stocks
based on their money management rules/principles.
RETAIL RESEARCH
Mid Cap Technical Picks
July 04, 2014
RETAIL RESEARCH
Adani Enter Weekly Chart
Stock has made a double bottom pattern recently around the 431 levels.
The change of polarity principle is at work as the 431 level was previously acting as an intermediate
resistance.
Recent upmove came with above average volumes. Also corrections came with lower volumes.
The 14-week RSI has eased lower thereby giving scope for a further potential rise in the stock.
One can enter the stock at CMP for upside targets of 766, which coincides with current lifetime highs of
the stock. CMP is Rs.498.75.
RETAIL RESEARCH
Crompton Greaves Monthly Chart
Crompton Greaves has rallied strongly from the 75 levels which coincided with a major multiyear trend
line support.
The recent rise has been accompanied with above average volumes indicating significant accumulation
has happened in this counter.
The 14-month RSI is in rising mode and not overbought, indicating more upside potential.
Immediate upside targets are at 243, which is the 61.8% retracement of the fall seen between 2010 and
2013.
Long term targets are at 400 which roughly coincide with a supply line that has held down the peaks of
2007 and 2010.
With CMP at 207.65, the reward is attractive.
RETAIL RESEARCH
IDBI Monthly Chart
IDBI has rallied strongly from the 50 levels which coincided with the lower end of a multiyear channel.
The recent upmove led to the stock moving above the 13-month SMA and was accompanied with above
average volumes indicating significant accumulation has happened in this counter.
The 14-month RSI is in rising mode and not overbought, indicating more upside potential.
Immediate upside targets are at 145, which is the 61.8% retracement of the fall seen between 2010 and
2013.
Long term targets are at 230 which roughly coincide with the upper end of a multiyear channel the stock
has been trading within.
With CMP at 107.95, the reward is attractive.
RETAIL RESEARCH
IGL (Indraprastha Gas) Monthly Chart
IGL has broken out of a three year old Triangular pattern.
The recent upmove led to the stock moving above the 13-month SMA and was accompanied with above
average volumes indicating significant accumulation has happened in this counter.
The 14-month RSI is in rising mode and not overbought, indicating more upside potential.
Long term targets are at 454, which correspond to the current lifetime highs of the stock.
With CMP at 365.15, the reward is attractive.
RETAIL RESEARCH
Jain Irrigation Monthly Chart
Jain Irrigation has rallied strongly from the 45 levels which coincided with a major multiyear trend line
support.
The recent rise has been accompanied with above average volumes indicating significant accumulation
has happened in this counter.
The 14-month RSI is in rising mode and not overbought, indicating more upside potential.
Immediate upside targets are at 173, which is the 61.8% retracement of the fall seen between 2010 and
2013.
With a healthy technical set up, we believe the stock has the potential to move beyond the current
lifetime highs of 252 in the long term.
With CMP at 127.35, the reward is attractive.
RETAIL RESEARCH
Tata Comm Monthly Chart
Tata Comm has broken out of a downward sloping trendline that has held down the Intermediate highs
of 2008 and 2009.
Breakout was accompanied with above average volumes indicating significant accumulation has
happened in this counter.
The 14-month RSI is in rising mode and not overbought, indicating more upside potential.
The MACD indicator too is in rising mode and giving healthy bullish signals.
Immediate upside targets are at 471, which is the 61.8% Fibonacci Extension level of the upmove which
began in 2013.
With a healthy technical set up, we believe the stock has the potential to move beyond these targets in
the long term towards their previous intermediate highs of 660 and 783.
With CMP at 408.7, the reward is attractive.
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: Subash Gangadharan (subash.gangadharan@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
Di scl ai mer : 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 non- Institutional Clients only
