The domestic stock markets saw marginal gains as buying support remained limited. The Nifty closed near the day's highs, up 0.28%, but struggled to sustain above the 5300 level. Technically, indicators are mostly positive but follow-through buying is lacking. The markets are expected to open flat as participants await cues from central bank meetings and the upcoming earnings season. Support and resistance levels for the Nifty are 5250-5081 and 5333-5500 respectively.

1. Daily Technical Outlook
5th July 2012
Indices * Close % Chg.
BSE SENSEX 17462.81 0.21
Consolidation continues
S&P CNX NIFTY 5302.55 0.28
Mirroring the positive global market cues the domestic
NIFTY JULY FUT. 5322.65 0.32
markets witnessed a firm opening. However, the Nifty
India VIX 18.27 -1.56 continued to struggle above the 5300 level as follow up
S&P CNX NIFTY Technical Levels buying support remained absent. Selling pressure was
witnessed which dragged the markets below the 5300 level
Level 1 Level 2 Level 3
but the markets managed to come off the lows in the
Support 5250 5114 5081
afternoon trade. The markets ended the day with marginal
Resistance 5333 5379 5500 gains to close near the gains for the day. The top gainers for
Moving Averages S&P CNX NIFTY the day were Sesa Goa, Sterlite, Jindal Steel, JP Associates,
50 Day SMA 5050.55
SAIL, Maruti, PNB, Tata Steel, SBI and Bharti Airtel.
100 Day SMA 5188.38 Technically, the market breadth remained positive amidst
200 Day SMA 5081.16 ◄Critical higher volumes, which is a positive sign for the markets.
The global market cues are cautious ahead of ECB and
Market Breadth * BSE NSE
Bank of England meet. The domestic markets are likely
Advances 1771 956
to witness a flat opening. The prevailing technical
Declines 1121 525 positives continue to hold good but follow up buying
Same 123 72 support remains elusive. The Stochastic, MACD, RSI and
Total 3015 1553 KST all are placed above their respective averages. The
A/D Ratio 1.58 : 1 1.82 : 1 MACD and KST are also placed in the positive territory,
which augurs well for the markets. The Nifty remains
Volume (Lacs Shares) * placed above the 50-day SMA, 100-day SMA and 200-day
04/07/12 03/07/12 % Chg. SMA. The +DI continues to move higher along with the
BSE 2506 2555 -1.92 ADX line and –DI line is moving sideways indicating
NSE 7447 7509 -0.83 buyers are gaining strength. These positive conditions
Total 9953 10064 -1.10 would lead to further buying support. However, a few
technical negatives hold good and would weigh on the
Turnover ( ` Crores) * market sentiment. The Stochastic has moved in the over
04/07/12 03/07/12 % Chg. bought zone on the daily charts, while the Nifty’s 50-day
BSE 2078.79 2062.65 0.78 SMA remains placed below its 100-day SMA and 200-day
NSE 10706.27 10363.91 3.30
SMA. These negative conditions would result in regular
bouts of profit taking. The market sentiment remains
NSE F&O 71568.41 84622.66 -15.43
positive but tentative. It is now important that the
Total 84353.47 97049.22 -13.08
markets witness follow up buying support at higher
F&O Contracts Traded (NSE) * levels, which so far remains elusive. Intermediate bouts
03/07/12 03/07/12 % Chg.
of volatility would be witnessed as Nifty struggles to
sustain above the 5300 level. In the meanwhile the
Index Fut. 306197 353444 -13.37
markets would take cues from the forthcoming earnings
Stock Fut. 452892 458963 -1.32
season, Rupee, global markets and the crude prices. The
Index Opt. 1772934 2218173 -20.07 support levels for Nifty are placed at 5250, 5114, 5081, 4950
Stock Opt. 146436 133233 9.91 and 4841. The Nifty faces resistance at the 5333, 5379 and
Total 2678459 3163813 -13.66 5500 levels.
NOTE - * - Source – BSE & NSE
Sanjay Bhatia (AVP – Technical Research), Email sanjay@keynotecapitals.net Yahoo Id: keytechnicals@yahoo.in
Keynote Capitals Ltd.
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The Ruby, 9 Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

2. Jaldi 5
(Short Term Technical Ideas for 5 Trading Days)
Stop
Initiation Stop Loss Target
Stock Close Action Price Loss * (%) Target (%) Remarks
Bajaj Auto 1583.20 Buy Above 1591.00 1564.00 1.70 1650 3.71
Bajaj Holdings 825.75 Buy Above 829.50 810.00 2.35 863 4.04
JSW Steel 726.20 Buy Above 730.00 711.50 2.53 771 5.62
* Stop Losses are to be considered strictly on closing basis.
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 17463 17453 17534 17604 17756 17382 17302 17150
S&P CNX NIFTY 5303 5298 5322 5342 5387 5278 5253 5209
NIFTY JULY FUT. 5323 5314 5341 5358 5403 5296 5269 5225
Keynote Capitals Ltd.
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The Ruby, 9 Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

3. Stocks to watch out today
APIL, Arvind, Bajaj Auto, Bajaj Holdings, Bharti Airtel, Bhushan Steel, Dish TV, DLF, Hindalco, Hind. Zinc, Idea, Indian Bank,
Indusind Bank, JSW Energy, JSW Ispat, JSW Steel, Maruti, Mcleod Russel, Petronet, PNB, Praj, Punj Lloyd, Rel. Capital, Rel.
Infra, SAIL, Sintex, Sobha, Sterlite, Tata Comm; TTK Prestige, Videocon, Voltas
Apollo Tyre, Hexaware, HUL, India Cement, ITC, Wipro
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