1. Daily Technical Outlook
17th October 2011
Indices Close % Chg. Mirroring the negative set of global market cues, the domestic
BSE SENSEX 17082.69 1.18 markets opened on a negative note. The overall trend
S&P CNX NIFTY 5132.30 1.07 remained range bound as markets. Stocks wavered between
NIFTY OCT. FUT. 5143.35 1.37 gains and losses throughout the session. Buying momentum
India VIX 25.98 -8.00
picked up in the afternoon session as markets moved above
the 5100 level. The markets managed to sustain higher
S&P CNX NIFTY Technical Levels though profit taking and selling pressure was witnessed. The
Level 1 Level 2 Level 3
markets ended the day with moderate gains to close near the
highs for the day. The top gainers for the day were Jindal
Support 4987 4757 4563
Steel, Bharti Airtel, Wipro, TCS, IDFC, HCL Tech., Bajaj Auto,
Resistance 5161 5230 5325
Cairn India, Grasim and Rel. Power.
Volume (Lacs Shares) Technically, the market breadth remained neutral amidst
14/10/11 13/10/11 % Chg. lower volumes. The global market set of cues are
BSE 2532 2032 24.61 positive. The domestic markets are likely to witness a
NSE 5694 6232 -8.64 positive opening. The Nifty is on verge of testing the
Total 8226 8264 -0.46 5161-5230 resistance levels. It continues to remain
Source – BSE & NSE placed above its 50-day SMA, which is a short-term
positive for the markets. The KST, RSI, MACD and
Turnover ( ` Crores)
Stochastic are placed above their respective averages,
14/10/11 13/10/11 % Chg.
which would lead to regular bouts of buying support.
BSE 2207.75 2523.74 -12.52 However, the prevailing negatives continue to still hold
NSE 9930.36 11217.23 -11.47 good. The Stochastic is placed in the over bought zone
NSE F&O 112439.60 122068.76 -7.89 and is likely to lead to profit taking and selling pressure.
Total 124577.71 135809.73 -8.27 Moreso, the MACD is placed in the negative territory,
Source – BSE & NSE which warns of impending selling pressure. The Nifty
Market Breadth (NSE)
continues to trade below its 200-day SMA. Further the 50-
day SMA remains placed below the 100-day SMA. All
Advances 754
these conditions would lead to increased selling
Declines 705
pressure especially at higher levels. The ADX, +DI line
Same 73 and –DI line are moving sideways, indicating a range
Total 1532 bound trend. The market sentiment remains tentative at
A/D Ratio 1.07 : 1 higher levels. Now, it is important that the Nifty sustains
Source – NSE above the 4987 resistance level for the markets to test
Moving Averages S&P CNX NIFTY the 5161-5230 resistance zone. In the meanwhile the
50 Day SMA 5018.93
markets would take cues from the global markets and the
◄Negative earnings season. The support levels for Nifty are placed at
100 Day SMA 5270.55
4987, 4757, 4563, 4387 and 4291. The Nifty faces resistance
200 Day SMA 5450.66 ◄Negative
at the 5161, 5230 and 5325 levels.
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 17083 17008 17187 17292 17576 16903 16724 16440
S&P CNX NIFTY 5132 5110 5164 5195 5280 5079 5025 4941
NIFTY OCT. FUT. 5143 5118 5179 5215 5313 5082 5020 4922
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
TGT of
205.90
Achieved
given @ 201
ITC 205.20 Buy Above 206 203.75 1.09 211 2.43 on 10/10/11
TGT of 860
Achieved
given @ 831
Reliance 866.90 Buy Above 870 850.00 2.30 914 5.06 on 11/10/11
TCS 1134.25 Buy Above 1141 1102.00 3.42 1227 7.54
* 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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