Keynote technicals daily report 050911


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Keynote technicals daily report 050911

  1. 1. Daily Technical Outlook 5th September 2011 Indices Close % Chg. The domestic markets witnessed a positive opening on back BSE SENSEX 16821.46 0.87 buying support leading to short covering. The Nifty managed S&P CNX NIFTY 5040.00 0.78 to sustain above the psychologically important 5000 level but NIFTY SEP. FUT. 5034.10 0.62 volumes recorded remained on a lower side. However, profit India VIX 26.09 4.86 taking and selling pressure was being witnessed at higher levels as Nifty came off the highs for the day, but managed to S&P CNX NIFTY Technical Levels bounce back towards the close of the day. The markets Level 1 Level 2 Level 3 ended the day with modest gains to close near the highs for the day. The top gainers for the day were Rel. Capital, Rel.Support 4987 4757 4563 Comm., DLF, Tata Steel, Sterlite, M&M, Rel. Infra, Bajaj Auto,Resistance 5161 5200 5325 Hindalco and Cairn India. Volume (Lacs Shares) Technically, the market breadth remained positive amidst 02/09/11 30/08/11 % Chg. lower volumes. The global market set of cues areBSE 1762 2557 -31.09 negative. The domestic markets are likely to witness aNSE 6248 6531 -4.33 gap down opening.. The markets continued to moveTotal 8010 9088 -11.86 higher on back of the Nifty managing to sustain aboveSource – BSE & NSE the psychologically important 5000 level. The MACD, RSI, KST and Stochastic are placed above their respective Turnover ( ` Crores) averages, which would lead to further buying support. 02/09/11 30/08/11 % Chg. The – DI line and ADX continue to move downwards butBSE 2194.37 2616.94 -16.15 are still placed above the 30 level, while the DI line hasNSE 12908.45 11687.49 10.45 started moving higher. However, a few technicalNSE F&O 83197.20 108801.62 -23.53 negatives continue to hold good and would lead toTotal 98300.02 123106.05 -20.15 selling pressure and profit taking at higher levels. TheSource – BSE & NSE Stochastic is placed in the over bought zone on the daily Market Breadth (NSE) charts, which would lead to regular bouts of profit taking. The Nifty continues to trade below its 200-day SMA.Advances 894 Further the 50-day SMA remains placed below the 100-Declines 570 day SMA. The markets will display occasional bouts ofSame 52 volatility as it tries to sustain above the psychologicallyTotal 1516 important 5000 level. Now, it is important that the NiftyA/D Ratio 1.57 : 1 continues to sustain above the 5000 level for atleast twoSource – NSE more trading days for it to move higher to test the 5150- Moving Averages S&P CNX NIFTY 5200 resistance levels. In the meanwhile the markets50 Day SMA 5351.38 would take cues from the global markets. The support ◄Negative levels for Nifty are placed at 4987, 4757 and 4563. The Nifty100 Day SMA 5460.88 faces resistance at the 5161, 5200 and 5325 levels.200 Day SMA 5587.25 ◄Negative Intra-day Resistance Intra-day Support Indices Close Pivot Point R1 R2 R3 S1 S2 S3BSE SENSEX 16821 16833 16978 17135 17437 16676 16531 16230S&P CNX NIFTY 5040 5049 5105 5169 5290 4984 4929 4808NIFTY SEP. FUT. 5034 5032 5075 5115 5198 4991 4948 4865Sanjay Bhatia (AVP – Technicals), Email Id Yahoo Chat Id: Keynote Capitals Ltd. th 4 Floor, Balmer Lawrie Bldg., 5, J. N. Heredia Marg, Ballard Estate, Fort, Mumbai, India – 400001. Tel: 3026 6000 / 2269 4322
  2. 2. Short Term Trading Ideas Based On Technical Analysis (5 - 7 Days) Stop Initiation Stop Loss Target Stock Close Action Price Loss * (%) Target (%) RemarksNagarjuna Fert. 23.55 Sell Below 23.25 24.30 4.52 21.00 9.68IFCI 37.10 Sell Below 36.65 37.85 3.27 34.00 7.23Coal India 388.15 Buy Above 391 384.50 1.66 405.00 3.58* Stop Losses are to be considered on Closing basis only. Keynote Capitals Ltd. th 4 Floor, Balmer Lawrie Bldg., 5, J. N. Heredia Marg, Ballard Estate, Fort, Mumbai, India – 400001. Tel: 3026 6000 / 2269 4322
  3. 3. DisclaimerThis document is not for public distribution and has been furnished to you solely for your information and must not be reproduced orredistributed to any other person. Persons into whose possession this document may come are required to observe these restrictions.This material is for the personal information of the authorized recipient, and we are not soliciting any action based upon it. This reportis not to be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer orsolicitation would be illegal. It is for the general information of clients of Keynote Capitals Ltd. It does not constitute a personalrecommendation or take into account the particular investment objectives, financial situations, or needs of individual clients.We have reviewed the report, and in so far as it includes current or historical information, it is believed to be reliable though itsaccuracy or completeness cannot be guaranteed. Neither Keynote Capitals Ltd., nor any person connected with it, accepts any liabilityarising from the use of this document. The recipients of this material should rely on their own investigations and take their ownprofessional advice. Price and value of the investments referred to in this material may go up or down. Past performance is not a guidefor future performance. Certain transactions -including those involving futures, options and other derivatives as well as non-investmentgrade securities - involve substantial risk and are not suitable for all investors. Reports based on technical analysis centers on studyingcharts of a stock’s price movement and trading volume, as opposed to focusing on a company’s fundamentals and as such, may notmatch with a report on a company’s fundamentals.Opinions expressed are our current opinions as of the date appearing on this material only. While we endeavor to update on areasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent usfrom doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may besubject to change without notice. Our proprietary trading and investment businesses may make investment decisions that areinconsistent with the recommendations expressed herein.We and our affiliates, officers, directors, and employees world wide may: (a) from time to time, have long or short positions in, and buyor sell the securities thereof, of company (ies) mentioned herein or (b) be engaged in any other transaction involving such securitiesand earn brokerage or other compensation or act as a market maker in the financial instruments of the company (ies) discussed hereinor act as advisor or lender / borrower to such company (ies) or have other potential conflict of interest with respect to anyrecommendation and related information and opinions.The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about thesubject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectlyrelated to specific recommendations or views expressed in this report.No part of this material may be duplicated in any form and/or redistributed without Keynote Capitals Ltd’s., prior written consent. Keynote Capitals Ltd. th 4 Floor, Balmer Lawrie Bldg., 5, J. N. Heredia Marg, Ballard Estate, Fort, Mumbai, India – 400001. Tel: 3026 6000 / 2269 4322