The domestic Indian markets opened higher, mirroring positive global cues. However, sustained selling pressure saw the markets give up their gains to end the day with modest increases. Technically, market breadth was negative amid higher volumes. The markets are expected to have a flat opening and resistance is seen at 5161 points. Support levels are at 5037 and 4987 points.

1. Daily Technical Outlook
23rd January 2012
Indices * Close % Chg. Mirroring the positive set of global market cues, the domestic
BSE SENSEX 16739.01 0.57 markets witnessed a gap up opening. Steady buying was
S&P CNX NIFTY 5048.60 0.60 witnessed as the Nifty moved higher. However, sustained
NIFTY JAN. FUT. 5047.85 0.51 selling pressure saw the markets come off the highs for the
India VIX 21.96 1.29 day to trade in the red. However, short covering and selective
buying support in late trade saw markets bounce back from
S&P CNX NIFTY Technical Levels the lows to end the day with modest gains. The top gainers
Level 1 Level 2 Level 3 for the day were Bajaj Auto, Axis Bank, ICICI Bank, Kotak
Support 5037 4987 4747 Bank, BHEL, PNB, BPCL, Jindal Steel, SBI and Wipro.
Resistance 5161 5225 5361
Technically, the market breadth remained negative
Moving Averages S&P CNX NIFTY amidst higher volumes. The global market set of cues are
50 Day SMA 4823.73 divergent. The domestic markets are likely to witness a
◄Negative
100 Day SMA 4940.68 flat opening. The Nifty has closed above the 5037
200 Day SMA 5220.21 ◄Negative
resistance level, which augurs well for the markets. The
Nifty remains placed above its 50-day SMA and 100-day
Volume (Lacs Shares) * SMA, which are short term positives. Moreover, the
20/01/12 19/01/12 % Chg. Stochastic, MACD, RSI, and KST are placed above their
BSE 2755 2416 14.03 respective averages, which would help in fueling further
NSE 8239 7248 13.68
buying support. The KST and MACD are also placed in
the positive territory. The Nifty remains placed above its
Total 10994 9664 13.77
October 2011 descending trend line, which is a positive
Turnover ( ` Crores) * sign for the markets. However, a few technical negatives
20/01/12 19/01/12 % Chg.
continue to prevail and are likely to cap the upside gains.
The Stochastic is still placed in the over bought zone,
BSE 2948.20 2509.13 17.50
which would lead to intermediate bouts of profit taking.
NSE 13694.39 11633.70 17.71
The Nifty continues to trade below its 200-day SMA. The
NSE F&O 146943.79 114230.17 28.64 50-day SMA is also placed below the 100-day SMA. All
Total 163586.38 128373.00 27.43 these conditions would lead to selling pressure
especially at higher levels. The ADX line, -DI line are
F&O Contracts Traded (NSE) *
moving sideways. However, the +DI line is placed at
20/01/12 19/01/12 % Chg.
34.30 level indicating buyers are gaining strength. The
Index Fut. 693501 468288 48.09 market sentiment remains tentatively positive. Now, it is
Stock Fut. 1047586 757384 38.32 important that the markets witness follow up buying
Index Opt. 3837293 3151817 21.75 support for the Nifty to move further and test the 5161
Stock Opt. 271876 229838 18.29 resistance level. Intermediate bouts of profit taking and
Total 5850256 4607327 15.79 selling pressure are likely to be witnessed. In the
meanwhile the markets would take cues from the
Market Breadth (NSE) * earnings season, the global markets, the crude prices
Advances 637 and RBI’s monetary policy on January 24th. The support
Declines 835 levels for Nifty are placed at 5037, 4987, 4747 and 4563. The
Same 76 Nifty faces resistance at the 5161, 5225 and 5361 levels.
Total 1548
A/D Ratio 0.76 : 1
NOTE - *- Source – BSE & NSE
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
www.keynotecapitals.com

2. Short Term Trading Ideas Based On Technical Analysis (5 - 7 Days)
Stop
Initiation Stop Loss Target
Stock Close Action Price Loss * (%) Target (%) Remarks
Allahabad Bank 145.95 Buy Above 147.30 143.80 2.38 155 5.23
TGT of 985
Achieved
given Buy @
945 on
Axis Bank 1009.05 Buy Above 1015.00 997.00 1.77 1055 3.94 13/01/12
Kotak Bank 494.85 Buy Above 498.25 488.50 1.96 520 4.37
* 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 16739 16713 16814 16890 17067 16638 16536 16360
S&P CNX NIFTY 5049 5039 5074 5099 5159 5014 4979 4919
NIFTY JAN. FUT. 5048 5040 5073 5098 5157 5015 4981 4923
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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