The domestic markets witnessed a flat opening and traded with modest losses due to selling pressure and profit taking. Buying momentum later picked up and the markets see-sawed between gains and losses as they struggled to find direction and closed near the day's lows. Technically, market breadth was negative amid lower trading volumes and indicators like MACD, RSI, and KST were below their averages, suggesting further selling pressure. However, some positive patterns were emerging that may lead to relief rallies through short covering and buying support. The markets will take cues from domestic and global developments.

1. Daily Technical Outlook
12th August 2011
Indices Close % Chg. Mirroring the negative set of global market cues, the domestic
BSE SENSEX 17059.40 -0.42 markets witnessed a flat opening. Selling pressure and profit
S&P CNX NIFTY 5138.30 -0.44 taking was witnessed in the morning trade as markets traded
NIFTY AUG. FUT. 5137.25 -0.42 with modest losses. Buying momentum picked up in the
India VIX 29.09 0.48
afternoon trade amidst intermediate bouts of volatility. The
markets see-sawed in both the directions struggling to find a
S&P CNX NIFTY Technical Levels direction. The markets ended the day flat to close near the
Level 1 Level 2 Level 3
lows for the day. The top losers for the day were Tata Power,
Axis Bank, HCL Tech., Bajaj Auto, Bharti Airtel, ICICI Bank,
Support 4987 4806 4757
Maruti, Jindal Steel, Cipla and IDFC.
Resistance 5195 5262 5364
Technically, the market breadth remained negative
Volume (Lacs Shares) amidst lower volumes. The global market set of cues are
11/08/11 10/08/11 % Chg. positive. The domestic markets are likely to witness a
BSE 2256 2973 -24.12 gap up opening. The -DI line remains placed above the 39
NSE 5431 6532 -16.86 level, indicating sellers have an upper hand. The ADX
Total 7687 9505 -19.13 line is moving higher, while the +DI line is moving down.
Source – BSE & NSE The Nifty continues to trade below its 200-day SMA.
Further the 50-day SMA remains placed below the 100-
Turnover ( ` Crores)
day SMA. The Nifty is trading below the February’11
11/08/11 10/08/11 % Chg.
ascending trendline. The MACD, RSI and KST are placed
BSE 2374.85 2828.40 -16.04 below their respective averages. Moreso, the KST and
NSE 10236.09 12081.20 -15.27 MACD are placed in the negative territory. These
NSE F&O 107841.86 127444.34 -15.38 conditions would result in selling pressure at regular
Total 120452.80 142353.94 -15.38 intervals. However, a few positive formations are taking
Source – BSE & NSE place and would help markets move higher. The MACD,
Market Breadth (NSE)
Stochastic, RSI and KST are placed in the over sold
territory on the daily charts. The Stochastic is also place
Advances 645
above its average. A positive divergence pattern
Declines 813
formation is underway. These conditions would lead to
Same 56 regular bouts of short covering and buying support
Total 1514 leading to relief rally. The market sentiment remains
A/D Ratio 0.79 : 1 cautious but the markets will remain volatile. In the
Source – NSE meanwhile the markets would take cues from the news
Moving Averages S&P CNX NIFTY flow on the progress of monsoon, crude prices and the
50 Day SMA 5483.91
global markets. The support levels for Nifty are placed at
◄Negative 4987, 4806 and 4757. The Nifty faces resistance at the 5195,
100 Day SMA 5563.86
5262, 5364 and 5500 levels.
200 Day SMA 5666.68 ◄Negative
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 17059 17093 17174 17288 17483 16979 16899 16704
S&P CNX NIFTY 5138 5148 5175 5212 5276 5111 5084 5020
NIFTY AUG. FUT. 5137 5149 5175 5213 5278 5111 5084 5019
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
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
Bata 683.65 Buy Above 685 674.00 1.61 710 3.65
Exide 159.25 Buy Above 162 156.00 3.70 175 8.02
Godrej Inds. 216.45 Buy Above 218 210.50 3.44 234 7.34
HDFC 683.70 Buy Above 689 670.50 2.69 730 5.95
Jain Irrigation 169.70 Buy Above 174 166.50 4.31 190 9.20
Target of 475
Achieved
given @ 451
Kotak Bank 469.00 Buy Above 474 462.00 2.53 500 5.49 on 10/08/11
Oriental Bank 340.70 Buy Above 342 329.00 3.80 370 8.19
Tata Comm. 216.50 Buy Above 218 210.00 3.67 236 8.26
* 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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