Sector momentum stock pick

August 17, 2015

Stock

SKS Microfinance

A near term trading stock idea

CMP

539.55

Recommended Action

Buy between CMP & Rs.510

Targets

Rs.595/ 625

SL*

Rs.490

Time Horizon

2-3 Weeks

SKS Microfinance Ltd:

SKS Microfinance weekly timeframe

Current Observation:

The attached weekly timeframe chart of SKS Micro finance Ltd is indicating a fine intermediate upmove in the
positive sequence of higher tops and bottoms over the last few months.

This weeks low of around Rs.505.00 levels could be considered as a new higher bottom of the sequence. Hence, one
may expect further upmove from here.

The couple of weeks decline in the stock price led to a formation of bullish hammer type pattern, which is suggesting
a bottom reversal pattern around Rs.500 levels. This is another indication to believe an upmove in the stock price for
next week.

The 20 week EMA (pink curvy line) has been offering a strong support for the stock price over the last many months
and last week saw the stock price rebound sharply from near the moving average support around Rs.491 levels.

Weekly momentum oscillator like 14 period RSI has reached the key upper area of 60 levels during its dips. As per
the formulation of RSI, its turning up from near 60-65 levels more often coincides sharp upmove in the underlying.

Overall positive chart and momentum pattern suggesting a buy trade set up in SKS Microsystem for near term.

RETAIL RESEARCH

Note:
* Place stoploss as per daily closing basis.
Recommended to stagger buying rather than entering entirely at CMP.
If first target achieved, then revise stoploss to buying price.

Technical Research Analyst: Nagaraj Shetti (H5101)

RETAIL RESEARCH Tel: (022) 3075 3400 Fax: (022) 2496 5066 Corporate Office
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RETAIL RESEARCH