The domestic Indian markets witnessed significant losses due to weak global cues and declining industrial production numbers. The Nifty closed below the crucial support level of 4987, adding to negative sentiment. Technically, market breadth was negative and volumes were lower. The markets are expected to open flat but further selling pressure could drive the Nifty down to test the 4757 support level.

1. Daily Technical Outlook
13th September 2011
Indices Close % Chg. Mirroring the weak set of global market cues, the domestic
BSE SENSEX 16501.74 -2.17 markets witnessed a gap down opening. Sustained selling
S&P CNX NIFTY 4946.80 -2.23 pressure was witnessed as markets traded below crucial
NIFTY SEP. FUT. 4942.45 -2.23 support level of 4987. Weak IIP numbers also added to the
India VIX 32.75 16.34
prevailing negative sentiment along with weak European
market cues. Though, short covering was witnessed at lower
S&P CNX NIFTY Technical Levels levels, buying support remained elusive. The markets ended
Level 1 Level 2 Level 3
the day with moderate losses to close near the lows for the
day. The top losers for the day were HCL Tech., IDFC, Rel.
Support 4757 4563 4387
Power, Tata Steel, Axis Bank, Hindalco, Rel. Infra, SBI, ICICI
Resistance 4987 5161 5200
Bank and Sterlite.
Volume (Lacs Shares) Technically, the market breadth remained negative
12/09/11 09/09/11 % Chg. amidst lower volumes. The global market set of cues are
BSE 2901 3854 -24.73 mix. The domestic markets are likely to witness a flat
NSE 6024 7638 -21.13 opening. The Nifty has closed below its crucial support
Total 8925 11492 -22.33 level of 4987, which is a negative sign. The prevailing
Source – BSE & NSE negatives would further weigh on the market sentiment
and would lead to increased selling pressure. The Nifty
Turnover ( ` Crores)
continues to trade below its 200-day SMA. Further the 50-
12/09/11 09/09/11 % Chg.
day SMA remains placed below the 100-day SMA. The
BSE 2264.45 3133.70 -27.74 Stochastic and RSI are placed below their respective
NSE 9893.50 12129.28 -18.43 averages. The KST is placed in the negative territory. The
NSE F&O 123256.12 111990.80 10.06 –DI line has again crossed the 30 level indicating sellers
Total 135414.07 127253.78 6.41 have regained upper hand. The only silver lining for the
Source – BSE & NSE market remains the Stochastic has come off the over
Market Breadth (NSE)
bought zone and the MACD remains placed above its
average and has moved in the positive territory. These
Advances 300
conditions would lead to short covering at lower levels
Declines 1186
along with selective buying support. The market
Same 40 sentiment has turned negative and further selling
Total 1526 pressure is likely to be witnessed. Nifty could test the
A/D Ratio 0.25 : 1 4757 support level if it fails to move and close above the
Source – NSE 4987 level. In the meanwhile the markets would take cues
Moving Averages S&P CNX NIFTY from the global markets, news flow ahead of the RBI’s
50 Day SMA 5303.86
meeting on September 16th and advance tax numbers.
◄Negative The support levels for Nifty are placed at 4757, 4563 and
100 Day SMA 5416.20
4387. The Nifty faces resistance at the 4987, 5161 and 5200
200 Day SMA 5559.36 ◄Negative
levels.
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 16502 16521 16649 16796 17071 16374 16246 15971
S&P CNX NIFTY 4947 4948 4985 5022 5097 4910 4874 4799
NIFTY SEP. FUT. 4942 4941 4981 5019 5098 4903 4863 4784
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
Bajaj Hind. 53.35 Sell Below 53.00 54.80 3.40 49.00 7.55
Exide 131.30 Sell Below 130.00 139.00 6.92 110.00 15.38
TGT of 143
Achieved
given @ 149
Hindalco 142.90 Sell Below 141.50 144.50 2.12 135.00 4.59 on 12/09/11
* 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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