1. Daily Technical Outlook
23rd February 2012
Indices * Close % Chg. The domestic markets witnessed a flat opening on back of
BSE SENSEX 18145.25 -1.54 divergent global market cues. However, the markets failed to
S&P CNX NIFTY 5505.35 -1.82 sustain and slipped in the red on back of profit taking and
NIFTY MAR. FUT. 5562.65 -1.06 selling pressure. Increased selling pressure was witnessed in
India VIX 26.80 2.09 the afternoon session as markets struggled to sustain higher.
The markets ended the day with moderate losses to close
S&P CNX NIFTY Technical Levels near the lows for the day. The top gainers for the day were
Level 1 Level 2 Level 3 DLF, SBI, Rel. Comm., Sterlite, JP Associates, Sesa Goa,
Support 5400 5327 5161 Jindal Steel, SAIL, PNB and Hindalco
Resistance 5681 5728 5885
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 5008.65 negative. The domestic markets are likely to witness a
◄Negative
100 Day SMA 5010.28 flat to negative. Finally a healthy correction has
200 Day SMA 5172.76 ◄Positive
materialized on the bourses on back of markets being
placed in over bought zone. The few prevailing technical
Volume (Lacs Shares) * negatives also weighed on the market sentiment. The
22/02/12 21/02/12 % Chg. Stochastic, MACD RSI and KST all are placed below their
BSE 4396 3816 15.20 respective averages. Moreover, all these oscillators are
NSE 13003 11205 16.05
also placed around the over bought zone. These
conditions would lead to regular bouts of profit taking
Total 17399 15021 15.84
and selling pressure. However, buying support is
Turnover ( ` Crores) * expected to be witnessed at lower levels as Nifty remains
22/02/12 21/02/12 % Chg.
placed above its key averages, viz; 50-day, 100-day and
200-day SMA. Moreover the KST and MACD are placed in
BSE 3852.67 3537.89 8.90
the positive territory, which augurs well for the markets.
NSE 18502.49 15879.53 16.52
The Nifty remains placed above its April’2011 descending
NSE F&O 224412.72 153479.46 46.22 trend line. The ADX line and +DI line are placed above the
Total 246767.88 172896.88 42.73 30 level, indicating buyers have an upper hand. All these
positive conditions would help in fueling buying support
F&O Contracts Traded (NSE) *
at lower levels. The market sentiment remains cautious
22/02/12 21/02/12 % Chg.
as markets are still placed near the over bought zone.
Index Fut. 918957 706894 30.00 Rise in crude prices could impact market sentiment. The
Stock Fut. 1449197 1180500 22.76 Nifty’s 50-day and 100-day SMA are poised decisively as
Index Opt. 5312176 3319078 60.05 50-day is on verge of a break out and is likely to move
Stock Opt. 255681 187742 36.19 above Nifty’s 100-day SMA. Now, it is important that the
Total 7936011 5394214 38.21 markets witness buying support at lower levels for the
Nifty to test the 5681 resistance level. Intermediate bouts
Market Breadth (NSE) * of volatility and choppiness are likely to be witnessed
Advances 242 due to derivative segment expiry today. In the meanwhile
Declines 1293 the markets would take cues from the earnings season,
Same 37 the global markets and the crude prices. The support
Total 1572
levels for Nifty are placed at 5400, 5327, 5161 and 5037. The
Nifty faces resistance at the 5681, 5728 and 5885 levels.
A/D Ratio 0.19 : 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
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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
Ambuja Cements 165.45 Sell Below 163.25 167.00 2.30 155 5.05
Ashok Leyland 28.10 Sell Below 27.75 29.00 4.50 25.00 9.91
Bata 668.00 Sell Below 665.00 681.00 2.41 630.00 5.26
* 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 18145 18255 18414 18683 19111 17986 17827 17399
S&P CNX NIFTY 5505 5542 5593 5681 5819 5454 5404 5265
NIFTY MAR. FUT. 5563 5595 5642 5722 5850 5515 5468 5340
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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