Daily Technical Outlook
21st May 2012
Indices * Close % Chg. Mirroring the subdue global cues the domestic markets
BSE SENSEX 16152.75 0.51 witnessed a gap down opening. Selling pressure was
S&P CNX NIFTY 4891.45 0.44 witnessed in the morning session as Nifty tested the 4777
NIFTY May FUT. 4888.95 0.76 support level but managed to respect it on back of short
India VIX 23.55 -0.16 covering and selective buying support in defensive stocks.
The markets bounced back in the afternoon trade on back of
S&P CNX NIFTY Technical Levels short covering and buying support helping the markets to
Level 1 Level 2 Level 3 come off the lows of the day. The markets held on to the
Support 4777 4742 4624 gains and ended the day with modest gains to close near the
Resistance 4950 5070 5106 highs for the day. The top gainers for the day SBI, Sesa Goa,
Grasim, IDFC, SAIL, ICICI Bank, ITC, GAIL and Kotak Bank.
Moving Averages S&P CNX NIFTY
50 Day SMA 5201.26 Technically, the market breadth remained negative
100 Day SMA 5170.23 amidst higher volumes, indicating buying was
200 Day SMA 5085.61 ◄ Critical concentrated in index heavyweight stocks. The global
market cues are divergent. The domestic markets are
Market Breadth (NSE) * likely to witness a flat opening. The markets witnessed a
Advances 622 pull back rally on back of the RSI and Stochastic being
Declines 838 placed in the over sold zone. The RSI has now moved
Same 77 above its average, while the Stochastic is already placed
Total 1537 above its average. Moreover, the Stochastic and RSI are
A/D Ratio 0.74 : 1
still placed around the over sold zone. Further the Nifty’s
50-day SMA remains placed above Nifty’s 100-day SMA
Volume (Lacs Shares) * and 200-day SMA. More so, the Nifty’s 100-day SMA is
18/05/12 17/05/12 % Chg. placed above the Nifty’s 200-day SMA. These positive
BSE 2024 1702 18.92
technical conditions would prompt short covering and
selective buying support. However, the prevailing
NSE 5896 5801 1.64
technical negatives continue to hold good and are likely
Total 7920 7503 5.56
to cap upside gains. The Nifty remains placed below its
Turnover ( ` Crores) * 50-day SMA, 100-day SMA and 200-day SMA. Further the
18/05/12 17/05/12 % Chg.
KST and MACD are placed below their respective
averages and also in the negative territory and warn of
BSE 2024.18 1804.73 12.16
impending selling pressure. These negative technical
NSE 10581.01 9737.46 8.66
conditions would lead to selling pressure especially at
NSE F&O 155862.13 114385.69 36.26 higher levels. The ADX line and -DI line are moving
Total 168467.32 125927.88 33.78 higher and are placed above the 30 level, while the +DI
line is moving lower, indicating sellers are gaining
F&O Contracts Traded (NSE) *
strength. The market sentiment remains negative. Now, it
18/05/12 17/05/12 % Chg.
is important that the markets witness buying support for
Index Fut. 619222 458605 35.02 the Nifty to move higher and test the 4950 level. In the
Stock Fut. 591779 502827 17.69 meanwhile the markets would take cues from the
Index Opt. 4877313 3525250 38.35 USDINR, global markets and the crude prices. The
Stock Opt. 362098 212753 70.20 support levels for Nifty are placed at 4777, 4742, 4624 and
Total 6450412 4699435 31.95 4530. The Nifty faces resistance at the 4950, 5070, 5106 and
5250 levels.
NOTE - *- Source – BSE & NSE
Sanjay Bhatia (AVP – Technicals), Email Id sanjay@keynotecapitals.net Yahoo Chat Id: keytechnicals@yahoo.in
Keynote Capitals Ltd.
th
The Ruby, 9 Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

Short Term Trading Ideas Based On Technical Analysis (5 - 7 Days)
Stop
Initiation Stop Loss Target
Stock Close Action Price Loss * (%) Target (%) Remarks
Aban 367.30 Buy Above 369 359.50 2.57 390 5.69
Bata 870.30 Buy Above 875 863.75 1.29 900 2.86
GE Shipping 246.20 Buy Above 247 242.00 2.02 258 4.45
* 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 16153 16056 16303 16453 16850 15906 15660 15263
S&P CNX NIFTY 4891 4863 4937 4983 5102 4817 4743 4624
NIFTY MAY FUT. 4889 4854 4941 4993 5132 4802 4715 4577
Keynote Capitals Ltd.
th
The Ruby, 9 Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

Stocks to watch out today
Apollo Tyre, Crompton Greaves, GMDC, HUL, ITC, Jindal Steel, NMDC, NTPC, SAIL, SBI, Sesa Goa, Sterlite, Suzlon,
Welcorp
Bharat Electronics, BHEL, Coal India, OFSS, Pantaloon Retail, Piramal Healthcare, Tata Chemicals, Voltas
Disclaimer
This document is not for public distribution and has been furnished to you solely for your information and must not be
reproduced or redistributed to any other person. Persons into whose possession this document may come are
required to observe these restrictions.
This material is for the personal information of the authorized recipient, and we are not soliciting any action based
upon it. This report is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal. It is for the general information of clients of Keynote
Capitals Ltd. It does not constitute a personal recommendation or take into account the particular investment
objectives, financial situations, or needs of individual clients.
We have reviewed the report, and in so far as it includes current or historical information, it is believed to be reliable
though its accuracy or completeness cannot be guaranteed. Neither Keynote Capitals Ltd., nor any person connected
with it, accepts any liability arising from the use of this document. The recipients of this material should rely on their
own investigations and take their own professional advice. Price and value of the investments referred to in this
material may go up or down. Past performance is not a guide for future performance. Certain transactions -including
those involving futures, options and other derivatives as well as non-investment grade securities - involve substantial
risk and are not suitable for all investors. Reports based on technical analysis centers on studying charts of a stock’s
price movement and trading volume, as opposed to focusing on a company’s fundamentals and as such, may not
match with a report on a company’s fundamentals.
Opinions expressed are our current opinions as of the date appearing on this material only. While we endeavor to
update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or
other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward-looking
statements are not predictions and may be subject to change without notice. Our proprietary trading and investment
businesses may make investment decisions that are inconsistent with the recommendations expressed herein.
We and our affiliates, officers, directors, and employees world wide may: (a) from time to time, have long or short
positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) be engaged in any other
transaction involving such securities and earn brokerage or other compensation or act as a market maker in the
financial instruments of the company (ies) discussed herein or act as advisor or lender / borrower to such company
(ies) or have other potential conflict of interest with respect to any recommendation and related information and
opinions.
The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal
views about the subject company or companies and its or their securities, and no part of his or her compensation
was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.
No part of this material may be duplicated in any form and/or redistributed without Keynote Capitals Ltd’s., prior
written consent.
Keynote Capitals Ltd.
th
The Ruby, 9 Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com