1. Daily Technical Outlook
25th May 2012
Indices * Close % Chg. The domestic markets witnessed a positive opening on back
BSE SENSEX 16222.30 1.72 of the government announcing the petrol price hike. Short
S&P CNX NIFTY 4921.40 1.77 covering and follow up buying support was witnessed at
NIFTY May FUT. 4913.10 2.05 higher levels as the Nifty moved above the 4900 level. It
India VIX 25.49 -6.04 struggled around the 4900 on back of profit taking and selling
pressure but managed a bounce back to move higher closing
S&P CNX NIFTY Technical Levels near the 4950 level. The markets ended the day with
Level 1 Level 2 Level 3 moderate gains to close near the highs for the day. The top
Support 4777 4742 4624 gainers for the day were ONGC, Bharti Airtel, Ranbaxy,
Resistance 4950 5070 5106 HDFC Bank, Bank of Baroda, IDFC, Rel. Infra, Axis Bank,
ICICI Bank and Jindal Steel.
Moving Averages S&P CNX NIFTY
50 Day SMA 5164.87 Technically, the market breadth remained positive amidst
100 Day SMA 5179.33 higher volumes, which is a positive sign for the markets.
200 Day SMA 5073.93 ◄ Critical The global market cues are divergent. The domestic
markets are likely to witness a flat opening. Yesterday
Market Breadth (NSE) * the markets witnessed a pull back rally on back of the
Advances 914 RSI being placed around the over sold zone. The RSI and
Declines 524 KST have moved above their respective averages.
Same 81 Moreover, the Nifty’s 50-day SMA remains placed above
Total 1519 Nifty’s 200-day SMA. The Nifty’s 100-day SMA is placed
A/D Ratio 1.74 : 1
above the Nifty’s 200-day SMA. These positive technical
conditions would lead to regular bouts of buying support
Volume (Lacs Shares) * and short covering, which would lead to intermediate
24/05/12 23/05/12 % Chg. bouts of relief rally. However, the prevailing technical
BSE 2025 1710 18.42
negatives continue to hold good and are likely to cap
upside gains. The Stochastic and MACD are still placed
NSE 5244 4964 5.63
below their respective averages. More so the KST and
Total 7269 6674 8.91
MACD are placed in the negative territory and warn of
Turnover ( ` Crores) * impending selling pressure. The Nifty remains placed
24/05/12 23/05/12 % Chg.
below its 50-day SMA, 100-day SMA and 200-day SMA.
Moreover, the 50-day SMA has slipped below its 100-day
BSE 1945.50 1821.04 6.83
SMA. These negative technical conditions would lead to
NSE 9052.11 8439.38 7.26
selling pressure at regular intervals. Though the ADX line
NSE F&O 166423.31 136899.22 21.57 and -DI line are trending these have started declining
Total 177420.92 147159.64 20.56 indicating sellers are covering their shorts. The market
sentiment remains tentative. Now it is important that the
F&O Contracts Traded (NSE) *
markets witness follow up buying support at higher
24/05/12 23/05/12 % Chg.
levels for Nifty to test and sustain above the 4950
Index Fut. 694100 565629 22.71 resistance level. In the meanwhile the markets would
Stock Fut. 597841 480313 24.47 take cues from the USDINR, global markets and the
Index Opt. 5357046 4440453 20.64 crude prices. The support levels for Nifty are placed at 4777,
Stock Opt. 223972 194627 15.08 4742, 4624 and 4530. The Nifty faces resistance at the 4950,
Total 6872959 5681022 16.65 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.
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The Ruby, 9 Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. 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
Apollo Tyre 87.55 Buy Above 88 84.75 3.80 95 7.83
Dr. Reddys 1707.00 Buy Above 1717 1686.00 1.81 1785 3.96
Fortis 99.00 Buy Above 100 95.50 4.50 110 10.00
* 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 16222 16136 16338 16454 16772 16021 15819 15501
S&P CNX NIFTY 4921 4894 4959 4996 5098 4857 4793 4691
NIFTY MAY FUT. 4913 4883 4955 4996 5109 4842 4771 4658
Keynote Capitals Ltd.
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The Ruby, 9 Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

3. Stocks to watch out today
Apollo Tyre, Areva, Aurobindo Pharma, Axis Bank, Bajaj Holdings, Coal India, havells, HDFC, Hindalco, IDFC, M&M, Mcleod
Russel, ONGC, Pantaloon Retail, PTC, ranbaxy, Rel. Capital, Tata Comm; Tata Global, Vijaya Bank, Wipro, Yes Bank
BPCL, Cairn India, HPCL, IOC, JP Associates, Oil India, Sobha, Sun TV, TTK Prestige, TTML, Voltas
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