1. Daily Technical Outlook
8th August 2011
Indices Close % Chg. Mirroring the weak set of global market cues, the domestic
BSE SENSEX 17305.87 -2.19 markets witnessed a gap down opening. Sustained selling
S&P CNX NIFTY 5211.25 -2.26 pressure was witnessed as markets failed to show any
NIFTY AUG. FUT. 5211.35 -2.41 resilience. The markets mirrored the panic sentiment across
India VIX 24.90 23.14
global markets. Though, occasional bouts of short covering
were witnessed the down fall continued. The markets ended
S&P CNX NIFTY Technical Levels the day with large losses to close near the lows for the day.
Level 1 Level 2 Level 3
The top losers for the day were Sterlite, Rel. Communication,
Cairn, Rel. Infra, HCL Tech., Rel. Power, Rel. Capital, JP
Support 5195 4987 4806
Associates, Sesa Goa and Tata Steel.
Resistance 5262 5364 5500
Technically, the market breadth remained subdue amidst
Volume (Lacs Shares) higher volumes, which is a negative sign for the markets.
05/08/11 04/08/11 % Chg. The global market set of cues are largely negative. The
BSE 2969 3255 -8.79 domestic markets are likely to witness a gap down
NSE 8057 6410 25.69 opening. The Nifty continues to trade below its 200-day
Total 11026 9665 14.08 SMA. The 50-day SMA remains placed below the 100-day
Source – BSE & NSE SMA. The Nifty has also breached the February’11
ascending trendline. The Stochastic, MACD, RSI and KST
Turnover ( ` Crores)
are already placed below their respective averages. The
05/08/11 04/08/11 % Chg.
KST and MACD are also placed in the negative territory.
BSE 3364.70 2949.08 14.09 These conditions would result in selling pressure at
NSE 14273.88 11222.49 27.19 regular intervals. The -DI line has witnessed a breakout
NSE F&O 203811.54 123167.69 65.47 and has crossed the 30 level, indicating sellers have an
Total 221450.12 137339.26 61.24 upper hand. The +DI and the ADX line are moving
Source – BSE & NSE sideways. The only silver lining for the markets remains
Market Breadth (NSE)
the Stochastic, being placed in the over sold territory on
the daily charts. This would result in regular bouts of
Advances 177
short covering and buying support at lower levels. The
Declines 1323
market sentiment remains negative and 5195 level
Same 26 remains a crucial level. Now, it is important that the Nifty
Total 1526 witnesses buying support at lower levels. Further selling
A/D Ratio 0.13 : 1 pressure is likely to be witnessed amidst occasional
Source – NSE bouts of short covering and relief rally. In the meanwhile
Moving Averages S&P CNX NIFTY the markets would take cues from the news flow on the
50 Day SMA 5517.61
progress of monsoon, crude prices and the global
◄Negative markets. The support levels for Nifty are placed at 5195,
100 Day SMA 5575.91
4987 and 4806. The Nifty faces resistance at the 5262, 5364,
200 Day SMA 5686.00 ◄Negative
5500 and 5600 levels.
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 17306 17218 17446 17586 17953 17078 16851 16484
S&P CNX NIFTY 5211 5186 5255 5299 5412 5142 5073 4959
NIFTY AUG. FUT. 5211 5187 5258 5306 5425 5139 5068 4949
Sanjay Bhatia (AVP – Technicals), Email Id sanjay@keynotecapitals.net Yahoo Chat Id: keytechnicals@yahoo.in
Keynote Capitals Ltd.
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4 Floor, Balmer Lawrie Bldg., 5, J. N. Heredia Marg, Ballard Estate, Fort, Mumbai, India – 400001. Tel: 3026 6000 / 2269 4322
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2. Short Term Trading Ideas Based On Technical Analysis (5 - 7 Days)
Stop
Initiation Stop Loss Target
Stock Close Action Price Loss * (%) Target (%) Remarks
Target of 58
Achieved
given @ 64
Bajaj Hind. 60.90 Sell Below 60 64.50 7.50 50 16.67 on 03/08/11
Bombay Dying 300.25 Sell Below 297 305.00 2.69 280 5.72
Target of 100
Achieved
given @ 107
Essar Oil 102.20 Sell Below 100 103.00 3.00 92 8.00 on 05/08/11
BPCL 701.50 Buy Above 705 684.00 2.98 750 6.38
HPCL 404.00 Buy Above 410 378.50 7.68 480 17.07
IOC 331.80 Buy Above 335 323.00 3.58 360 7.46
* Stop Losses are to be considered on Closing basis only.
Keynote Capitals Ltd.
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4 Floor, Balmer Lawrie Bldg., 5, J. N. Heredia Marg, Ballard Estate, Fort, Mumbai, India – 400001. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

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