1. Daily Technical Outlook
11th July 2011
Indices Close % Chg. Mirroring the positive set of global market cues, the domestic
BSE SENSEX 18858.04 -1.15 markets witnessed a firm opening. The Nifty fell marginally
S&P CNX NIFTY 5660.65 -1.19 short of testing its long term 200-day SMA. However, profit
NIFTY JULY FUT. 5672.30 -1.27 taking and selling pressure saw the Nifty come off the highs
India VIX 18.67 0.26
of the day. The markets failed to show any resilience against
the broad based selling pressure ahead of the weekend. The
S&P CNX NIFTY Technical Levels markets ended the day with moderate losses to close near
Level 1 Level 2 Level 3
the lows for the day. Nifty managed to close above the 5600
level. The top losers for the day were Sterlite, Hindalco, Sesa
Support 5600 5500 5364
Goa, SAIL, IDFC, JP Associates, Grasim, ICICI Bank,
Resistance 5750 5885 5911
Ambuja Cement and Jindal Steel.
Volume (Lacs Shares) Technically, the market breadth remained weak amidst
08/07/11 07/07/11 % Chg. lower volumes. The global market set of cues are largely
BSE 3109 4411 -29.52 negative. The domestic markets are likely to witness a
NSE 6667 6127 8.82 flat to negative opening. The 200-day SMA continued to
Total 9776 10538 -7.23 remain a stiff resistance level for markets to break. The
Source – BSE & NSE Nifty failed to touch this important level. The Nifty has
also failed to sustain above its November 2010
Turnover ( ` Crores)
descending trendline. The MACD, RSI and KST are
08/07/11 07/07/11 % Chg.
placed in the positive and above their respective
BSE 3214.40 3493.58 -7.99 averages on the daily charts, which would lead to regular
NSE 12269.41 12023.56 2.04 bouts of buying support at lower levels. The +DI line
NSE F&O 101598.39 102607.02 -0.98 remains placed above the 30 level indicating buyers have
Total 117082.20 118124.16 -0.88 an upper hand. The ADX and the –DI line remain
Source – BSE & NSE sideways. However, a few other technical negatives
Market Breadth (NSE)
would continue to weigh markets. The Stochastic
remains placed below its average on the daily charts,
Advances 457
which would lead to regular bouts of selling pressure.
Declines 982
The 50-day SMA remains placed below the 100-day SMA.
Same 70 The markets are poised crucially. Now, it is important
Total 1509 that the Nifty tests its 200-day SMA positively. If it fails to
A/D Ratio 0.47 : 1 do so we would witness increased selling pressure. In
Source – NSE the meanwhile the markets would take cues from the
Moving Averages S&P CNX NIFTY news flow on monsoon, forthcoming earnings season,
50 Day SMA 5503.02
crude prices and the global markets. The support levels for
◄Negative Nifty are placed at 5600, 5500, 5364, 5262 and 5175. The
100 Day SMA 5563.92
Nifty faces resistance at the 5750, 5885 and 5911 levels.
200 Day SMA 5741.93 ◄Negative
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 18858 18936 19054 19250 19564 18740 18622 18308
S&P CNX NIFTY 5661 5684 5717 5773 5863 5628 5595 5505
NIFTY JULY FUT. 5672 5698 5735 5797 5896 5636 5599 5500
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 CMP Action Price Loss * (%) Target (%) Remarks
Bharat Electro. 1669.95 Buy Above 1680 1648.00 1.90 1750 4.17
Cummins 681.60 Buy Above 690 681.00 1.30 708 2.61
LIC Housing 216.65 Sell Below 212 219.00 3.30 197 7.08
* Stop Losses are to be considered on Closing basis.
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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