HDFC Sec Monthly Technical Stock Picks- December 2014

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Buy Electrosteel Casting, Sell Idea Cellular & Reliance Power

Electrosteel Casting -Observation
 Attached weekly timeframe chart of Electrosteel Casting Ltd is showing an indication of bottom reversal pattern
during its consolidation of the last few weeks.
 After showing weakness during last week, the stock price bounced back smartly this week and is currently making 
attempt to move above the weekly consolidation of around Rs.22.00 levels.
 The strong intermediate support is intact for the stock around Rs.19 and 18.60 levels-green and brown trend lines 
respectively.
 The participation has picked up during this weeks upmove (after showing lower volumes during declines of last 
week), which is indicating beginning of bulls participation.
 Weekly momentum oscillator is moving up from the positive region suggesting gathering of strength of upside 

momentum. It is looking attractive for fresh buys here.


Idea Cellular Observation
 The Telecomm sector is underperforming and the Idea Cellular Ltd is one of the stocks, which is showing down trend
and is not performing during positive broader market.
 The positive sequence of higher tops and bottoms has been broken (downside break of ascending trend line) and the 
stock price has declined during last session without showing any strength to recover. This indicates the strength of 
negative trend and one may expect continuation of weakness from here.
 The daily momentum oscillator like 13 period MACD indicator has turned down below its signal line indicating weak 
momentum setup.
 We also observe weak inherent strength in this stock price. In recent chart set up we notice the formation of more
no of bearish candles during decline and the formation of less no of positive candles during upmove or pullback rally.
 Overall negative chart pattern is signaling a short trade set up here on any bounce back



 Reliance Power Observation
 The attached daily timeframe chart of Reliance Power Ltd is indicating a bearish trend in the last many months as 
the stock price declined lower by forming lower lows.
 The sharp recovery attempt during early this month has been failed and the stock price slipped into smaller negative 
sequence of lower tops and bottoms. After a minor bounce recently, the stock is now set to show another round of 
decline, to form a new lower bottom.
 After breaking below the key lower levels support of around Rs.68.50 (green line), the pullback rally attempt has 
failed and the stock is now ready to show for next leg of fresh declines.
 Daily momentum oscillator like 14 period RSI has turned down from near 40 levels. The daily RSI is moving within a 
bearish high low range of around 60-30 levels and one may expect it to slide down to further lows, from the current 
reading of38. This could be an indication of further weakness in momentum oscillator as well as in the stock price for 
near term.
 Overall negative chart pattern is showing an opportunity for a fresh sell in Reliance Power Ltd for near term. 

LINK
http://www.hdfcsec.com/Share-Market-Research/Research-Details/StockReports/3010074