Morning Dew - 22 July 2013

Key Points

• JCI ended the week up by 1.97% as the rebound continues. The upside seems to be capped at 4740 however, which is also the 100-day EMA. It's going to be a make or break situation for JCI this coming week as the upside strength has been weakening as indicated by the declining volume. First line support comes in at 4679 while the more serious support comes at 4635. As for the upside, targets come in at 4740 first, then 4848 and subsequently 5124. It is likely that the current wave c of B will end up at 4848 considering lack of positive catalysts.
• Lack of macro catalysts will shift the investors' attentions to the corporate earnings in the US. This could mean another limited fluctuations of JCI in the coming week. So far, the Fed's Bernanke's assurance that there's no preset timing of the end of QE3 has been receiving positive response but keep well in mind that that does not mean the Fed won't start the reduction of stimulus this September. We could still see the stimulus getting reduced in September and removed completely one year from now and that the rates to start rising in 2015.
• TELE has been out of the recommendation pool as it fell below its stop loss point last Friday. So, at the moment there are six active recos and two recos pending for entries (ASRI and ROTI). BBCA remains on top of the list, followed by WSKT.

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