October 25, 2014

Weekly momentum stock pick

A medium term investment perspective
Stocks

CMP

Recommended Action

SL*

Target

Time Horizon

Sintex Industries Ltd

Rs.89.55

Buy above Rs.90.70

Rs. 85.50

Rs.103

1-2 Weeks

Jain Irrigation

Rs.84.40

Buy between Rs.84.50-83.50

Rs.79.75

Rs.95

1-2 Weeks

* Stoploss as per daily closing basis.

Sintex Industries Ltd:

Sintex Industries weekly timeframe

Current Observation:

The attached weekly timeframe chart of Sintex Industries Ltd is now showing an excellent bottom reversal pattern,
as the stock price has moved up sharply in the last couple of weeks.

The long term support of 40 week EMA (equal to 200day EMA) and the upside breakout of the larger degree of
consolidation of the last 2-3 months of last week has resulted in a sharp bounce back so far.

The positive sequence of higher tops and bottom is intact and the recent swing low of around Rs.66.50 is going to be
a new higher bottom of the sequence. Now one may probably expect the upmove above Rs.105 levels to form a fresh
higher top in coming weeks.

The weekly momentum indicator like 21 period stochastic has moved up from near the oversold region of 20-30
levels hinting at the possibility of beginning of upside momentum in the stock price.

Positive pattern and momentum is suggesting a fresh buying opportunity in Sintex Industries Ltd for near term.

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Jain Irrigation systems Ltd:

Jain Irrigation systems Ltd

Current Observation:

The sharp declining trend in Jain Irrigation Systems Ltd of the last few months seems to have ended now as the
stock prices have formed an excellent bottom reversal pattern in the last couple of weeks, as per weekly timeframe
chart.

The strong valuation support of around Rs.75.50 (green horizontal line, connecting previous swing highs) held nicely
last week and the stock price sprang up sharply by breaking above the hurdle of down sloping trend line around
Rs.82.00 (this week).

The stock price has witnessed a follow through upmove this week, which is crucial with regards to a bottom reversal
pattern of this stock. This is for first time the stock price is showing gains week on week basis, during its down trend
of the last three months. This pattern could be a confirmation of the valid bottom reversal and one may expect
continuation of upmove from here.

Weekly momentum oscillator like 14 period RSI has turned up from near the lower bullish range of 40 levels (bullish
range of 75-40 levels). As per the bullish range theory the weekly RSI is expected to move up to the upper 60 levels
and above (from current reading of46 levels). This expected pattern of weekly RSI could lead stock price to move up
from here.

Overall positive technical set up is showing an opportunity for fresh buying in Jain Irrigation Systems Ltd for near
term.

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Analyst: Nagaraj Shetti

RETAIL RESEARCH Tel: (022) 3075 3400 Fax: (022) 2496 5066 Corporate Office
HDFC securities Limited, I Think Techno Campus, Building - B, "Alpha", Office Floor 8, Near Kanjurmarg Station, Opp. Crompton Greaves, Kanjurmarg (East),
Mumbai 400 042 Phone: (022) 3075 3400 Fax: (022) 2496 5066 Website: www.hdfcsec.com Email: hdfcsecretailresearch@hdfcsec.com
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 non-Institutional Clients

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