The domestic stock markets opened flat but saw selling pressure in the morning session and traded lower. However, markets recovered later due to buying support and short covering, ending the day with moderate gains near the highs. Technically, market breadth was robust with higher volumes, a positive sign, though key technical indicators remain below their averages, suggesting intermittent volatility ahead of the derivatives expiry. Global cues were mixed.

1. Daily Technical Outlook
24th August 2011
Indices Close % Chg. Mirroring the mix set of global market cues, the domestic
BSE SENSEX 16498.47 0.96 markets witnessed a flat opening. Selling pressure was
S&P CNX NIFTY 4948.90 1.02 witnessed in the morning session as markets traded lower.
NIFTY AUG. FUT. 4947.40 0.75 However, markets managed a smart pull back due to buying
India VIX 25.92 -4.28
support and short covering. The markets managed to hold on
to the gains though selling pressure was being witnessed at
S&P CNX NIFTY Technical Levels higher levels. The markets ended the day with moderate
Level 1 Level 2 Level 3
gains to close near the highs for the day. The top gainers for
the day were TCS, Bajaj Auto, Infosys Tech., Axis Bank,
Support 4806 4757 4481
BHEL, HCL Tech., Bharti Airtel, L&T, HDFC Bank and HUL.
Resistance 4987 5195 5262
Technically, the market breadth remained robust amidst
Volume (Lacs Shares) higher volumes, which is a positive sign for the markets.
23/08/11 22/08/11 % Chg. The global market set of cues are mix. The domestic
BSE 2773 2463 12.59 markets are likely to witness a flat opening. The Nifty
NSE 5480 5375 1.95 continues to trade below its 200-day SMA. Further the 50-
Total 8253 7838 5.29 day SMA remains placed below the 100-day SMA. The
Source – BSE & NSE Nifty remains placed below the February’11 ascending
trendline. The MACD and KST are placed below their
Turnover ( ` Crores)
respective averages. The -DI line and the ADX line
23/08/11 22/08/11 % Chg.
remains placed above the 37 level, indicating sellers
BSE 2247.03 2014.36 11.55 have an upper hand. The +DI line is flattening out.
NSE 10149.10 9617.96 5.52 Moreso, the KST and MACD are placed in the negative
NSE F&O 170266.39 163235.64 4.31 territory. These conditions would result in selling
Total 182662.52 174867.96 4.46 pressure at regular intervals. However, the MACD, RSI,
Source – BSE & NSE KST and Stochastic are placed in the over sold territory
Market Breadth (NSE)
on the daily charts. Moreso, the Stochastic and RSI has
moved above its average. These conditions would lead to
Advances 1027
regular bouts of short covering and buying support
Declines 412
leading to relief rally. The market sentiment remains
Same 68 tentative. The markets will display intermediate bouts of
Total 1507 volatility and choppiness ahead of the derivative
A/D Ratio 2.49 : 1 segment expiry. In the meanwhile the markets would take
Source – NSE cues from the global markets, crude prices, newsflow on
Moving Averages S&P CNX NIFTY Anna Hazare’s campaign and the progress of monsoon.
50 Day SMA 5407.54
The support levels for Nifty are placed at 4806, 4757 and
◄Negative 4481. The Nifty faces resistance at the 4987, 5195, 5262,
100 Day SMA 5519.06
5364 and 5500 levels.
200 Day SMA 5627.21 ◄Negative
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 16498 16420 16627 16756 17092 16291 16084 15748
S&P CNX NIFTY 4949 4926 4989 5028 5130 4887 4824 4722
NIFTY AUG. FUT. 4947 4929 4992 5037 5145 4884 4820 4712
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
APIL 532.25 Buy Above 537.00 524.00 2.42 565.00 5.21
TGT of 1560
Achieved
given @ 1492
Bajaj Auto 1544.85 Buy Above 1550.00 1505.00 2.90 1650.00 6.45 on 23/08/11
Bata 714.95 Buy Above 719.00 705.00 1.95 750.00 4.31
Bharti Airtel 401.60 Buy Above 405.00 393.75 2.78 430.00 6.17
* 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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