Fidessa Group PLC

Stocks Update

CSS Partners Service Letter

Fidessa Group PLC
FDSA.L

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Stocks Update

Rolls-Royce PLC

Rolls-Royce is again making higher lows from a low of 614.5p indicating a positive trend in the stock. MACD is positive and 12 day EMA is below 26 day EMA indicating a consolidation in the stock. 14 day RSI has crossed above 50 indicating strength in the positive trend. 14 day positive DMI is just below 14 day negative DMI, while 14 day ADX is near 12 indicating a consolidation. The stock should be a hold with the same reduced profit target of 655.0p.

Amec PLC

Amec hit the stop loss of 1130.0p but the stock recovered from its low and is again trading above 1150.0p which indicates the stock is in a consolidation phase between 1100.0p and 1200.0p. Momentum oscillator MACD is negative and 12 day EMA is below 26 day EMA indicating weakness in the positive trend. 14 day RSI is below 50 indicating weakness in the positive trend. The stock is also below 20 day and 50 day EMA indicating a weakness in the positive trend. 14 day positive DMI is below 14 day negative DMI, while 14 day ADX is near 9, indicating a consolidation in the stock. All positions should be closed for the stock.

BATS PLC

BATS is consolidating below its 52-week high of 2749.0p indicating a weakness in the positive trend. MACD is positive and 12 day EMA is below 26 EMA indicating a weakness in the uptrend. 14 day RSI is trading below 70 indicating the stock is overbought and not forming a new high, while the recent stock price rise indicates a consolidation in the stock. 14 day positive DMI is above 14 day negative DMI and 14 day ADX is at 25, indicting a positive trend. Looking at consolidation in the stock it should be a hold with a reduced profit target of 2565.0p and new a stop loss of 2889.0p.

Admiral PLC

Admiral is in a consolidation phase after the stock recovered from its low of 1626.0p making a high of 1741.0p for the week. Momentum oscillator MACD is positive and 12 day EMA is below 26 day EMA indicating a consolidation in the stock. 14 day RSI is above 60 indicating a positive trend in the stock. 14 day positive DMI is above 14 day negative DMI, while 14 day ADX is near 28, indicating a positive trend in the stock. Looking at consolidation in the stock it should be a hold with a reduced profit target of 1620.0p and a new stop loss of 1830.0p.

G4S PLC

G4S made a new 52-week high of 285.2p last week with higher lows indicating the stock has recovered all its losses. MACD is positive and in MACD 12 day EMA is below 26 EMA indicating a consolidation in the stock. 14 day RSI is above 60 indicating a positive trend in the stock. 14 day positive DMI is above 14 day negative DMI and 14 day ADX is at 22, indicting a positive trend. Looking at consolidation in the stock it should be a hold with a reduced profit target of 269.0p and a new stop loss of 303.8p.

Inmarsat PLC

Inmarsat is still consolidating above 600.0p, indicating it is consolidating between 600.0p and 625.0p. Momentum oscillator MACD is negative and 12 day EMA is below 26 day EMA, showing weakness in the positive trend. 14 day RSI is below 50 also indicating weakness in the positive trend. 14 day positive DMI is below 14 day negative DMI, while 14 day ADX is near 8 indicating consolidation in the stock. The stock has immediate resistance at 650.0p and support near 600.0p. Looking at consolidation in the stock it should be a hold with a reduced profit target of 641.0p and new stop loss of 567.0p.

Burberry Group PLC

Burberry slumped to a low of 1256.0p indicating a weakness in the positive trend but the stock recovered above 1330.0p at the week’s end.  MACD is positive and in MACD 12 day EMA is below 26 day EMA, supporting a consolidation in the stock. 14 day RSI is trading near 50 from the overbought zone with lower highs, indicating a correction in stock prices. The stock is above 20 day and 200 day EMA, which supports a positive trend. 14 day positive DMI is below 14 day negative DMI and 14 day ADX is near 27 supporting a consolidation. Looking at consolidation in the stock it should be a hold with a reduced profit target of 1281.0p and a new stop loss of 1444.0p.

Chemring Group PLC

Chemring is forming an uptrend after the stock rebounded from its support level of 640.0p making higher lows. This is supported by the stock climbing above 20 day and 200 day EMA. MACD is still negative and 12 day EMA is above 26 day EMA, indicating a positive trend is forming in the stock. 14 day RSI is above 50 and rising indicating the stock is forming an uptrend. 14 day positive DMI is above 14 day negative, while 14 day ADX is near 18 indicating a consolidation in the stock. Looking at the consolidation in the stock it should be a hold with reduced a profit target of 682.5p and a new stop loss of 604.5p.

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Important Information

This report has been issued by CSS Partners LLP (“CSS Partners”). CSS Partners is an appointed representative of Charles Street Securities Europe LLP (“CSS”) which is authorised and regulated by the Financial Services Authority in the UK. It constitutes non-independent “investment research” as contemplated by the FSA Rules and is thus considered a marketing communication. This report was prepared by Kuldeep Bhati who is employed as an analyst at CSS Partners and as such does not conform with the FSA definition of independent investment research and as such is not subject to the rule of not dealing ahead of distribution of the marketing communication and was not prepared in line with the legal requirements for independent communication.

The report is provided solely for your information and may not be reproduced or redistributed, in whole or in part to any other person without specific consent of CSS Partners.

In the preparation of this report, CSS Partners has had access to publicly available information and other sources believed to be reliable. Whilst reasonable care has been taken to ensure that the facts stated herein are accurate and that the recommendations, forecasts, opinions and expectations contained herein are fair and reasonable, neither the author, nor CSS Partners, nor CSS has verified the public information upon which this is based. None of the author, CSS Partners, CSS or any of their respective directors, officers or employees (the “Parties”) makes any representation or warranty, express or implied as to soundness of the recommendation, the accuracy or completeness of the information or opinions contained herein. Investors must make their own investment decision and not rely on this report. The Parties shall not be liable for any loss, costs, liability, expenses (together “losses”) suffered by you following your utilising any of the services we provide other than losses arising directly as a result of fraud or wilful default on our part or as a result of any liability that may not be excluded under the UK regulatory system. In no event shall we be liable for special, indirect or consequential damages of any kind, even though we may have been informed about the possibility of such loss. You shall indemnify us and our officers and employees on demand and keep all such persons indemnified against all losses which may be incurred directly or indirectly by reason of or in consequence of providing this service save to the extent that such losses arise directly as a result of our, fraud or wilful default.

Any opinions, forecasts or estimates herein constitute a judgment as at the date of this report. There can be no assurance that future results or events will be consistent with any such opinions, forecasts or estimates. This information is subject to change without notice. It may be incomplete or condensed and it may not contain all material information concerning the Company. This document does not constitute or form part of and should not be construed as any offer for sale or purchase of (or solicitation of or invitation to make any offer to buy or sell) any securities nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever.

Risk Factors

There is no certainty that the recommendations will be successful or that they will make money for investors.

There is no certainty that execution prices can be achieved, either in opening or in closing a position.

There is considerable risk operating in equity, futures, options and spread betting markets and investors need to be able to sustain a total loss of capital along with unlimited liability. Potential investors are recommended to consult a financial adviser before entering into such positions.

Regulatory disclosures

In accordance with the Conduct of Business Rules COBS12.4.7R (i) in the preparation of the report the analyst used price and volume charts provided by independent data suppliers and applied technical analysis tools of investment and trading evaluation in arriving at his recommendations, ii) all recommendations made by the analyst are followed up in subsequent reports until the closure of a position, iii) there is no certainty that any recommendation will be successful or that technical analysis should be used exclusively to arrive at investment decisions.

In accordance with section 12.4 of the FSA’s New Conduct of Business Rules, CSS Partners makes the following disclosures:

CSS, CSS Partners and their respective officers, directors, shareholders and /or partners may have a shareholding in the companies reviewed in this report. They will not have access to this report until it is published, except those responsible for compliance issues concerning this report.

The research analyst responsible for the content of this research report certifies that: the views expressed and attributed to the research analyst or analysis in the research report accurately reflect his personal assessment about the subject securities and issuers and/or other subject matter as a appropriate and no part of his compensation was, is or will be, directly or indirectly related to the specific recommendations or views contained in this research report. On a general basis, the efficacy of recommendations is a factor in the performance appraisals of analysts.

The analyst is not involved in any other activity of CSS Partners or CSS that is inconsistent with his objectivity in preparing the reports. His research information is confidential, the only persons privy to this data bar the analyst are senior management. The research recommendations will be updated, but neither CSS nor CSS Partners accept any responsibility for any delay or interruption of service in the submission of reports or updates to reports.

Distribution of recommendations for the period 1st October to 31st December 2010:

	% Distribution of recommendations	No of recommendation
Buy	95.25%	20
Hold	0	0
Sell	4.75%	1

The first column displays the % distribution of recommendations made by CSS Partners in this Technical Analysis Trading programme and the second column shows the numbers of such recommendation. Neither CSS nor CSS Partners has any investment banking relationships with any of the companies covered in the Technical Analysis Trading Programme, namely the companies in the FTSE 350 index.

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