The document provides a daily technical outlook for the Indian stock market. It notes that the markets opened flat but saw selective buying support. The Nifty failed to sustain gains and ended the day with moderate gains near the highs. Technically, market breadth was robust but lower volumes. The outlook is cautious as technical indicators are mixed, with supports at 4950 and resistances at 5070.

1. Daily Technical Outlook
29th May 2012
Indices * Close % Chg. Mirroring the divergent market cues the domestic markets
BSE SENSEX 16416.84 1.23 witnessed a flat opening. Selected buying support was
S&P CNX NIFTY 4985.65 1.33 witnessed as the Nifty moved above the 4950 level. However,
NIFTY May FUT. 4975.40 1.27 the Nifty failed to sustain above this resistance level on back
India VIX 23.68 -5.80 of profit taking and selling pressure. Buying support gained
momentum in the afternoon trade as Nifty crossed the 4950
S&P CNX NIFTY Technical Levels level and managed to hold above it. The markets ended the
Level 1 Level 2 Level 3 day with moderate gains to close near the highs for the day.
Support 4950 4777 4742 The top gainers for the day were SBI, BHEL, Tata Power,
Resistance 5070 5106 5250 PNB, Sesa Goa, Axis Bank, Hindalco, Tata Motors, Rel. Infra
and ICICI Bank.
Moving Averages S&P CNX NIFTY
50 Day SMA 5146.11 Technically, the market breadth remained robust amidst
100 Day SMA 5183.25 lower volumes. The global market cues are divergent.
200 Day SMA 5070.74 ◄ Critical The domestic markets are likely to witness a flat opening.
The Nifty managed to close above the 4950 resistance
Market Breadth (NSE) * level on back of good follow up buying support. The RSI,
Advances 973 KST, Stochastic and MACD all are placed above their
Declines 492 respective averages. Moreover, the Nifty’s 50-day SMA
Same 79 remains placed above Nifty’s 200-day SMA. The Nifty’s
Total 1544 100-day SMA is also placed above the Nifty’s 200-day
A/D Ratio 1.98 : 1 SMA. These positive technical conditions would lead to
regular bouts of buying support, which would lead to
Volume (Lacs Shares) * intermediate bouts of relief rally. However, the prevailing
28/05/12 25/05/12 % Chg. technical negatives continue to hold good and are likely
BSE 1631 1785 -8.63 to cap upside gains. The Stochastic has moved in the
NSE 4520 4982 -9.27
over bought zone. Moreover, the KST and MACD are
placed in the negative territory and warn of impending
Total 6151 6767 -9.10
selling pressure. The Nifty remains placed below its 50-
Turnover ( ` Crores) * day SMA, 100-day SMA and 200-day SMA. Moreover, the
28/05/12 25/05/12 % Chg. 50-day SMA has slipped below its 100-day SMA. These
BSE 1594.53 1793.83 -11.11
negative technical conditions would lead to selling
pressure at regular intervals and would cap the upside
NSE 7386.83 8120.96 -9.04
gains. Though the ADX line is trending –DI line and +DI
NSE F&O 136423.91 122173.77 11.66
line are moving sideways. The market sentiment remains
Total 145405.27 132088.56 10.08 tentative. Now it is important that the markets witness
F&O Contracts Traded (NSE) * follow up buying support at higher levels for Nifty to test
its 200-day SMA resistance level. The markets would
28/05/12 25/05/12 % Chg.
witness intermediate bouts of volatility and choppiness
Index Fut. 537801 432069 24.47 ahead of the derivative segment expiry on Thursday. In
Stock Fut. 813801 609231 33.58 the meanwhile the markets would take cues from the
Index Opt. 3983481 3787369 5.18 USDINR, global markets and the crude prices. The
Stock Opt. 228418 192087 18.91 support levels for Nifty are placed at 4950, 4777, 4742, 4624
Total 5563501 5020756 4.63 and 4530. The Nifty faces resistance at the 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
AB Nuvo 784.80 Buy Above 790 770.00 2.53 834 5.57
Allahabad Bank 140.25 Buy Above 141 137.75 2.30 148 4.96
Asian Paints 3835.00 Buy Above 3840 3768.00 1.88 4000 4.17
* 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 16417 16377 16480 16543 16710 16314 16210 16044
S&P CNX NIFTY 4986 4971 5010 5034 5098 4946 4907 4843
NIFTY MAY FUT. 4975 4963 5000 5025 5088 4938 4900 4838
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
ABB, Adani Enterprises, Allahabad Bank, Arvind, AsianPaints, Axis Bank, Bajaj Holdings, Bank of India, Bata, BGR Energy,
Bharat Forge, BHEL, Bombay Dying, Cummins, Exide, Fortis, GE Shipping, Glaxo, GMDC, Havells, HDFC Bank, Hindalco,
Hind. Zinc, Jubilant Food, Kotak Bank, L&T, NCC, NTPC, OFSS, Oriental Bank, Patel Engg; Piramal Health; PNB, Powergrid,
Punj Lloyd, Raymond, Rel. Infra, Rolta, SBI, Syndicate Bank, Tata Chem; Tata Comm; Tata Global, Tata Motors, VIP, Voltas
HPCL, HUL, MLL, Oil India
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