1. Daily Technical Outlook
1st November 2011
Indices Close % Chg. Mirroring the mix set of global market cues, the domestic
BSE SENSEX 17705.01 -0.56 markets witnessed a flat opening. The markets drifted lower
S&P CNX NIFTY 5326.60 -0.64 on back of selling pressure and profit taking. The overall trend
NIFTY NOV. FUT. 5347.10 -0.71 remained lackluster and volumes remained tepid. The
India VIX 22.66 8.47
markets struggled to move higher due to lack of follow up
buying support. The markets ended the day with modest
S&P CNX NIFTY Technical Levels losses to close near the lows for the day. The top losers for
Level 1 Level 2 Level 3
the day were Hindalco, Tata Motors, Sterlite, SAIL, Ambuja
Cement, DLF, Grasim, BHEL, Reliance and ACC.
Support 5325 5230 5161
Resistance 5409 5517 5634 Technically, the market breadth remained neutral amidst
lower volumes. The global market set of cues are
Volume (Lacs Shares) negative. The domestic markets are likely to witness a
31/10/11 28/10/11 % Chg. flat opening. The Nifty remains placed above its 50-day
BSE 2069 2022 2.32 SMA, which is a short term positive and triggering the
NSE 6093 7298 -16.51 current phase of uptrend. The, RSI, KST and MACD are
Total 8162 9320 -12.42 placed above their respective averages and in the
Source – BSE & NSE positive territory. All these conditions would lead to
buying support at regular intervals. However, the
Turnover ( ` Crores)
prevailing technical negatives are likely to cap the upside
31/10/11 28/10/11 % Chg.
gains. The Stochastic has breached its average and is
BSE 2190.68 2512.57 -12.81 also placed in the over bought zone on the daily charts.
NSE 10712.71 14328.97 -25.24 This would lead to profit taking and selling pressure. The
NSE F&O 73233.00 94938.21 -22.86 Nifty continues to trade below its 200-day SMA. Further
Total 86136.39 111779.75 -22.94 the 50-day SMA remains placed below the 100-day SMA.
Source – BSE & NSE All these conditions would lead to selling pressure and
Market Breadth (NSE)
profit taking especially at higher levels. The ADX and –DI
line are moving sideways, but +DI line is placed above 30
Advances 767
indicating buyers have an upper hand. The market
Declines 706
sentiment remains tentatively positive as Nifty index
Same 66 inches near its 200-day SMA. Now, it is important that the
Total 1539 Nifty continues to sustain above the 5325 level for it to
A/D Ratio 1.09 : 1 move higher and test the 200-day SMA placed at 5409. In
Source – NSE the meanwhile the markets would take cues from the
Moving Averages S&P CNX NIFTY global markets and the earnings season. The support
50 Day SMA 5011.17
levels for Nifty are placed at 5325, 5230, 5161 and 4987. The
◄Negative Nifty faces resistance at the 5409, 5517, 5634 and 5681.
100 Day SMA 5238.14
200 Day SMA 5406.77 ◄Negative
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 17705 17729 17789 17874 18018 17644 17584 17439
S&P CNX NIFTY 5327 5334 5353 5379 5425 5307 5288 5243
NIFTY NOV. FUT. 5347 5353 5372 5397 5441 5328 5309 5264
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
Andhra Bank 118.80 Buy Above 121.25 119.00 1.86 126.00 3.92
Bajaj Hind. 38.40 Buy Above 39.00 37.00 5.13 44.00 12.82
Divis Labs 770.95 Buy Above 778.00 754.00 3.08 830.00 6.68
Areva 211.20 Sell Below 210.00 214.50 2.14 200.00 4.76
EKC 61.55 Sell Below 61.00 63.35 3.85 58.00 4.92
* Stop Losses are to be considered on Closing basis only.
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
www.keynotecapitals.com

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