- The Indian markets opened higher and gained over 2% mirroring positive global cues, but then lost gains due to weak European markets and sustained selling pressure. - The markets ended the day with handsome gains despite range-bound, listless trading. Key gainers were stocks like Sterlite, Jindal Steel, and Axis Bank. - Technically, market breadth was robust with higher volumes, seen as positive. Global cues were mixed and the domestic markets were expected to have a flat opening.

1. Daily Technical Outlook
10th October 2011
Indices Close % Chg. Mirroring the positive set of global market cues, the domestic
BSE SENSEX 16232.54 2.79 markets witnessed a gap up opening. The markets moved
S&P CNX NIFTY 4888.05 2.88 higher to trade above the 4900 level. However, lack of follow
NIFTY OCT. FUT. 4898.60 2.71 up buying support and sustained selling pressure due to
India VIX 33.02 -6.64
weak European market opening saw the market come off the
highs for the day. Overall trend remained listless and range
S&P CNX NIFTY Technical Levels bound. The markets ended the day with handsome gains.
Level 1 Level 2 Level 3
The top gainers for the day were Sterlite, Jindal Steel, Axis
Bank, Tata Motors, DLF, Sesa Goa, IDFC and ICICI Bank.
Support 4757 4563 4387
Resistance 4987 5161 5211 Technically, the market breadth remained robust amidst
higher volumes, which is a positive sign. The global
Volume (Lacs Shares) market set of cues are mix. The domestic markets are
07/10/11 05/10/11 % Chg. likely to witness a flat opening. The Nifty witnessed a
BSE 2013 2009 0.20 relief rally on back of the Stochastic being placed in the
NSE 5386 5074 6.14 over sold territory and also due to positive global market
Total 7399 7083 4.46 cues. The RSI has moved above its average and would
Source – BSE & NSE lead to further buying support. Moreso, the Stochastic
has moved above its average and is placed near the
Turnover ( ` Crores)
overt sold zone, which would lead to short covering and
07/10/11 05/10/11 % Chg.
buying support at regular intervals. However, the upside
BSE 2072.47 2373.27 -12.67 gains are likely to be capped due to the prevailing
NSE 10924.01 10128.53 7.85 negatives, which would weigh on the market sentiment.
NSE F&O 100109.90 96285.00 3.97 The KST and MACD continue to remain placed below
Total 113106.38 108786.80 3.97 their respective averages and also in the negative
Source – BSE & NSE territory, which warns of impending selling pressure. The
Market Breadth (NSE)
Nifty continues to trade below its 200-day SMA. Moreso,
the 50-day SMA remains placed below the 100-day SMA.
Advances 1075
All these conditions would lead to increased selling
Declines 390
pressure especially at higher levels. The –DI line has
Same 60 come off the 30 level indicating sellers are losing grip,
Total 1525 while the ADX, +DI line are moving sideways. The market
A/D Ratio 2.76 : 1 sentiment remains cautious as the earnings season
Source – NSE approaches. Now, it is important that the Nifty sustains
Moving Averages S&P CNX NIFTY above the 4757 level for it to test the 4987 resistance
50 Day SMA 5065.82
level. In the meanwhile the markets would take cues from
◄Negative the global markets and earnings quarter. The support
100 Day SMA 5289.52
levels for Nifty are placed at 4757, 4563, 4387 and 4291. The
200 Day SMA 5474.21 ◄Negative
Nifty faces resistance at the 4987, 5161 and 5211 levels.
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 16233 16243 16337 16442 16640 16139 16044 15846
S&P CNX NIFTY 4888 4891 4920 4952 5013 4859 4829 4768
NIFTY OCT. FUT. 4899 4903 4934 4970 5036 4868 4837 4770
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
Bharti Airtel 354.80 Sell Below 348 361.00 3.74 319 8.33
ITC 199.15 Buy Above 201 198.75 1.12 206 2.49
McDowell 832.40 Buy Above 839 823.00 1.91 875 4.29
* 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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