WAY2WEALTH Securities Pvt. Ltd., 3rd Floor, Tower B, Hincon House, 247 Park, LBS Road, Vikhroli (West) Mumbai - 400083. Tel +91 22 6146 email: research@way2weal th.com website: www.way2wealth.com Way2wealth Research is also available on Bloomberg WTWL <GO>I EQUITIES ID AL SPEC AL12 th November 2012 BSE BANKEX2006 2007 2008 2009 2010 2011 2012 2013 2014 -500 0 500 1000 1500 MA CD (451.066) 4000 5000 6000 7000 8000 9000 10000 11000 12000 13000 14000 15000 16000 17000 0.0% 23.6% 38.2% 50.0% 61.8% 100.0% A B C * BSE BANKEX (12,969.41, 13,458.36, 12,899.87, 13,186.94, +239.650) Above is the chart of BSE BANKEX BSE BANKEX had taken off its 2008 swing high in November 2010 which confirmed that it is out of the Intermediate Bear market and it has started its Primary Bull market. The rise from the lows of 2009 i.e. 3598 till November 2010 is considered as wave 1 i.e. the first leg of the Primary Bull market. Following that Market again drifted on the way down which retraced 50% of the entire rise in wave 1. This correction/intermediate Bear market is wave 2 which is then followed by the second leg up i.e. wave 3 which is the longest of all which means that the rally will be far more than that of 2009. Though, one always has to trade cautiously as there is a condition attached to it that till 11250 levels hold the uptrend is valid but below that the assumption goes wrong which would then mean that the intermediate bottom is yet not in place. The behavior of the momentum indictor MACD on the monthly chart is quite interesting and accurate. The moment it comes into buy or sell mode it defines either the Bull Market or Bear Market. The above chart clearly depicts that it has come into buy mode again and it has also reversed from the zero reference line which supports our above assumption of primary Bull market. Hence, the risk-reward is quite favorable for the Bulls Top Picks from Banking sector : 1)Bank of India 2)Federal Bank 3)DCB 4)Union Bank
