Buy Ansal Properties, Sell Divis Laboratories and Wipro -Weekly momentum stock pick 08 Dec :: HDFC Securities

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Ansal API weekly timeframe
Current Observation:
 The small cap Realty stocks have witnessed smart upmove recently and the Ansal Properties & Infra Ltd (ANSAL API)
is one of the stocks that moved up smartly today.
 The attached weekly timeframe chart of the stock price is indicating a bottom reversal pattern around the multiple
supports of around Rs.29.00 and 30.30 levels (up sloping trend line-brown and 100week EMA-pink curvy line).
 Post sharp upmove of later part of Oct, the stock price declined without showing any conviction and this week formed
a variation type of bullish pattern of hammer around Rs.29.00 levels.
 After the formation of lower tops and bottoms the stock price is now forming a slight higher bottom around Rs.29 as
per weekly chart, signaling the exhaustion of decline and the signal of the beginning of fresh upmove.
 With positive technical setup, one may look to buy ANSAL API for near term.

Divis Lab weekly timeframe

Current Observation:

 The Pharmaceutical sector was not performing with broader market and the Divis Laboratories Ltd is one of the 

underperformer in the Pharma pack, which is currently showing weak bias.

 The attached weekly timeframe chart of Divis Lab is showing a variation type of top reversal pattern of bearish H&S 

pattern (head & shoulder pattern) around the swing high of Rs.1888-later Oct 14.

 The key lower levels support of neck line (brown horizontal line) is placed around Rs.1690 levels, where the stock 

price is making repeated attempt to move below that area. This is negative for the underlying trend of the stock.

 The bullish sequence of higher tops and bottoms seems to have completed as per weekly timeframe and the stock 

price was not able to move up in the last few weeks, after showing new swing highs. This could lead to a beginning

the new sequence of lower bottoms and tops.

 Weekly momentum oscillator like MACD has turned down by cutting below its signal line, indicating weak momentum 

set up.

 The negative overall technical setup is suggesting for a short trade in this stock for near term. 

Wipro weekly timeframe

Current Observation:

 The IT sector has been showing weakness in the last many sessions and the Wipro Ltd has declined sharply today in 

line with the weak IT sector.

 A smart bounce back from near the low of around Rs.547 levels (later part of Oct-14) seems to have failed around 

the strong resistance of regression trend line (green line, which is connected from the bottom of 315-later part of 

May 2013).

 The stock price declined this week after making failed attempt to move above the previous broken support line

(green line) around Rs.600 levels signaling emergence of fresh weakness as per larger timeframe chart.

 We observe a formation of new lower top around Rs.600 levels and this pattern could set in for fresh weakness for 

coming weeks to form a new lower bottom.

 Weekly momentum oscillator like RSI has turned down from near 60 levels. From here, the weekly RSI is expected to 

reach down to lower 40 levels (from the current reading of 55 levels). This expected pattern could have negative 

impact on the stock price.