1. Daily Technical Outlook
31st May 2012
Indices * Close % Chg. Mirroring the weak Asian market cues the domestic markets
BSE SENSEX 16312.15 -0.77 witnessed a negative opening. Selling pressure was
S&P CNX NIFTY 4950.75 -0.79 witnessed in the morning trade as the Rupee depreciated
NIFTY May FUT. 4933.05 -0.98 further. Though, short covering and selective buying support
India VIX 25.30 5.28 was witnessed at lower levels the markets failed to capitalize
due to lack of follow up buying support. The markets ended
S&P CNX NIFTY Technical Levels the day with moderate losses to close near the lows for the
Level 1 Level 2 Level 3 day. The top losers for the day were Tata Motors, Rel. Infra,
Support 4950 4777 4742 IDFC, BHEL, DLF, ICICI Bank, PNB, BPCL and Sterlite.
Resistance 5070 5106 5250
Technically, the market breadth remained subdue amidst
Moving Averages S&P CNX NIFTY higher volumes, which is a negative sign for the markets.
50 Day SMA 5133.43 The global market cues are negative. The domestic
100 Day SMA 5187.61 markets are likely to witness a gap down opening. The
200 Day SMA 5069.49 ◄ Critical prevailing technical negatives and constant rupee
depreciation weighed on market sentiment. The
Market Breadth BSE NSE Stochastic has slipped below its average and is also
Advances 1046 425 placed in the over bought zone. Moreover, the KST and
Declines 1654 1047 MACD are placed in the negative territory and warn of
Same 128 73 impending selling pressure. The Nifty remains placed
Total 2828 1545 below its 50-day SMA, 100-day SMA and 200-day SMA.
A/D Ratio 0.63 : 1 0.41 : 1 Moreover, the 50-day SMA is placed below its 100-day
SMA. These negative technical conditions would lead to
Volume (Lacs Shares) * selling pressure at regular intervals. However, a few
30/05/12 29/05/12 % Chg. positive technical conditions still hold good and would
BSE 1919 1919 0.00 prompt buying support and short covering at lower
NSE 5471 5148 6.28 levels. The RSI, KST and MACD all are still placed above
Total 7390 7067 4.57
their respective averages. Moreover, the Nifty’s 50-day
SMA remains placed above Nifty’s 200-day SMA. The
Turnover ( ` Crores) * Nifty’s 100-day SMA is also placed above the Nifty’s 200-
30/05/12 29/05/12 % Chg. day SMA. These positive technical conditions would lead
BSE 1749.05 1749.05 0.00
to regular bouts of buying support, which would lead to
intermediate bouts of relief rally. The ADX line, the –DI
NSE 9062.29 8510.49 6.48
line and +DI line are moving sideways, indicating a range
NSE F&O 148077.46 147429.87 0.44
bound trend. The market sentiment remains tentative.
Total 158888.80 157689.41 0.76 Now it is important that the markets take support at the
F&O Contracts Traded (NSE) * 4950 support level and also witness follow up buying
support for the Nifty to test the 5000 level. The markets
30/05/12 29/05/12 % Chg.
would witness intermediate bouts of volatility and
Index Fut. 587551 537755 9.26
choppiness due to derivative segment expiry. In the
Stock Fut. 916652 922410 -0.62 meanwhile the markets would take cues from the Indian
Index Opt. 4308013 4276103 0.75 GDP data to be announced today, USDINR, global
Stock Opt. 222598 228327 -2.51 markets and the crude prices. The support levels for Nifty
Total 6034814 5964595 0.44 are placed at 4950, 4777, 4742, 4624 and 4530. The Nifty
NOTE - *- Source – BSE & NSE
faces resistance at the 5070, 5106 and 5250 levels.
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
DLF 183.45 Sell Below 181.00 190.50 5.25 160 11.60
Havells 546.70 Sell Below 543.00 555.60 2.32 515 5.16
IDBI 86.20 Sell Below 85.75 90.00 4.96 77 10.20
* 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 16312 16345 16395 16479 16612 16262 16212 16079
S&P CNX NIFTY 4951 4959 4974 4997 5034 4936 4922 4885
NIFTY MAY FUT. 4933 4941 4956 4979 5017 4918 4903 4865
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
Balrampur Chini, BoI, BEMl, BHEL, BPCL, Colgate, DCB, DLF, Escorts, HOECL, HPCL, IDBI, IDFC, IGL, Indian Hotels,
Indusind Bank, IOC, IVRCL, MRPL, NALCO, NMDC, ONGC, Powergrid, Punj Lloyd, Rel. Comm; Rel. Capital, Renuka Sugar,
Tata Motors, Tata Power, Titan, TTK Prestige
HCL Tech; HUL, India Infoline, Infosys Tech; Maruti, MLL, PTC, TCS, Wipro, ZEEL
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