The domestic stock markets were range-bound and ended the day with modest losses, closing near the lows. Volumes remained low as the markets struggled to find direction amid mixed global cues. Technically, the market breadth was positive but short-term indicators were below their averages, suggesting increased selling pressure at higher levels. The support and resistance levels for the Nifty are provided.

1. Daily Technical Outlook
19th July 2011
Indices Close % Chg. Mirroring the mix set of global market cues, the domestic
BSE SENSEX 18507.04 -0.30 markets witnessed a flat opening. The overall trend remained
S&P CNX NIFTY 5567.05 -0.25 range bound. Volumes continued to remain tepid as markets
NIFTY JULY FUT. 5572.75 0.23 struggled to find a direction. Selling pressure was witnessed
India VIX 20.20 1.25
at higher levels, while selective buying support was visible at
lower levels. The markets ended the day with modest losses
S&P CNX NIFTY Technical Levels to close near the lows for the days. The top losers for the day
Level 1 Level 2 Level 3
were Cipla, NTPC, M&M, Rel. Communication, TCS, Tata
Motors, L&T, Sesa Goa, Dr. Reddys and Sun Pharma.
Support 5500 5364 5262
Resistance 5600 5729 5885 Technically, the market breadth remained positive amidst
higher volumes. The global market set of cues are
Volume (Lacs Shares) negative. The domestic markets are likely to witness a
18/07/11 15/07/11 % Chg. flat opening. The market sentiment continues to remain
BSE 4066 2141 89.91 tentative leading to directionless trend on the bourses.
NSE 4217 4720 -10.65 The Nifty continues to trade below its 200-day SMA.
Total 8283 6861 20.73 Moreover, the 50-day SMA remains placed below the 100-
Source – BSE & NSE day SMA. The MACD, the RSI and the KST are placed
below their respective averages on the daily charts.
Turnover ( ` Crores)
These conditions would lead to increased selling
18/07/11 15/07/11 % Chg.
pressure especially at higher levels. The Stochastic
BSE 2642.91 2098.74 25.93 remains placed comfortably above its averages, which
NSE 8276.66 8815.95 -6.12 would lead to regular bouts of buying support. The +DI
NSE F&O 82265.22 103757.51 -20.71 line, the ADX line and -DI line are moving sideways
Total 93184.79 114672.20 -18.74 indicating markets are likely to remain range bound. The
Source – BSE & NSE volumes are likely to remain tepid but occasional bouts
Market Breadth (NSE)
of volatility and choppiness would be witnessed. The
market sentiment continues to remain tentative. Now, it
Advances 766
is important that the Nifty finds buying support at regular
Declines 682
intervals if the markets have to test its long term 200-day
Same 66 SMA, which is placed around the 5729 level. In the
Total 1514 meanwhile the markets would take cues from the
A/D Ratio 1.12 : 1 forthcoming earnings season, news flow on the progress
Source – NSE of monsoon, crude prices and the global markets. The
Moving Averages S&P CNX NIFTY support levels for Nifty are placed at 5500, 5364, 5262 and
50 Day SMA 5505.21
5175. The Nifty faces resistance at the 5600, 5729, 5885 and
◄Negative 5911 levels.
100 Day SMA 5569.12
200 Day SMA 5728.98 ◄Negative
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 18507 18533 18597 18686 18839 18444 18380 18227
S&P CNX NIFTY 5567 5572 5592 5617 5663 5546 5526 5480
NIFTY JULY FUT. 5573 5581 5601 5630 5679 5552 5532 5483
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 CMP Action Price Loss * (%) Target (%) Remarks
ABB 899.6 Buy Above 905 887 1.99 945 4.42
Target of 612
Achieved given
Buy @ 579 on
APIL 606.55 Buy Above 610 596 2.30 640 4.92 18/07/11
NCC 83.55 Buy Above 85 82 2.96 90 6.51
REC 230.75 Buy Above 233 220 5.58 260 11.59
* Stop Losses are to be considered on Closing basis.
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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