Sell Canara Bank , Engineers India ::HDFC Securities

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->
Canara Bank Current Observation:
 The banking sector has been participating in full swing during weak broader market and this PSU Banking stock has
reacted sharply down in today’s session.
 The attached daily timeframe chart of Canara Bank is suggesting a consolidation move near the strong resistance of
around Rs.427.00 (green horizontal line).
 The volume has expanded during today’s decline (compared to lower volume of last sessions upmove-not shown on
the chart), suggesting short build up in this stock. This could eventually lead to a steep decline in the stock price
 Daily momentum oscillators like +DMI and ADX are showing favorable indications of beginning of sharp declines in
the stock price for near term.
 The overall negative chart pattern with weak momentum is suggesting a fresh selling opportunity in Canara Bank.


Engineers India, Current Observation:
 The attached daily timeframe chart of Engineers India Ltd is indicating that the stock price is consistently hitting the
support area (down sloping trend line-green line), but the strength to move up significantly after hitting the support
is missing in the last few weeks.
 Today, the stock price declined sharply and is now placed on the edge of breaking below the key support of around
Rs.217 (green down sloping trend line). The key resistance of 50 day EMA is also offering strong hurdle around
Rs.239 levels. This is indicating a sharp weakness is ahead for the stock for near term.
 The daily momentum oscillator like 14 period RSI has slipped below the key lower levels of 40. The daily RSI has
made a bearish range shift by turning below from the upper levels of 57 during early Dec-14 (current reading-36).
From here, the daily RSI is expected to move down to 30-25 levels and this expected action could have a sharp
negative impact on the stock price.
 One may look to go for fresh shorting opportunity in Engineers India Ltd for near term.