1. Daily Technical Outlook
25th July 2011
Indices Close % Chg. Mirroring the positive set of global market cues, the domestic
BSE SENSEX 18722.30 1.55 markets witnessed a gap up opening. Buying momentum was
S&P CNX NIFTY 5633.95 1.67 witnessed in the morning trade, which led to short covering
NIFTY JULY FUT. 5645.55 1.80 helping the markets to trade above the 5600 level. Though,
India VIX 17.91 -4.48
profit taking and selling pressure was witnessed at higher
levels, the markets managed to hold on to the gains. The
S&P CNX NIFTY Technical Levels markets showed no signs of weakness. The markets ended
Level 1 Level 2 Level 3
the day with moderate gains to close near the highs for the
day. The top gainers for the day were Axis Bank, Bharti Airtel,
Support 5600 5500 5364
Rel. Comm., IDFC, M&M, Grasim, PNB, ICICI Bank, Ambuja
Resistance 5718 5885 5911
Cement and Sesa Goa.
Volume (Lacs Shares) Technically, the market breadth remained positive amidst
22/07/11 21/07/11 % Chg. lower volumes, which was mainly due to fall in volumes
BSE 2944 3807 -22.67 of midcap stocks. The global market set of cues are
NSE 6058 5293 14.45 weak. The domestic markets are likely to witness a flat
Total 9002 9100 -1.08 opening. The bounce back has helped the Stochastic,
Source – BSE & NSE RSI and KST move above their respective averages,
which is a positive sign for the markets. This would help
Turnover ( ` Crores)
in witnessing buying support at regular intervals. The +DI
22/07/11 21/07/11 % Chg.
line is on the threshold of a breakout as it nears the 30
BSE 3187.31 2717.91 17.27 level. The ADX line and the -DI line continue to move in a
NSE 11632.77 10013.07 16.18 sideways pattern. However, a few technical negatives
NSE F&O 154205.44 108522.48 42.10 continue to still hold good. The MACD remains placed
Total 169025.52 121253.46 39.40 below its average, which would lead to selling pressure
Source – BSE & NSE at higher levels. The Nifty continues to trade below its
Market Breadth (NSE)
200-day SMA. The 50-day SMA remains placed below the
100-day SMA. The market sentiment remains tentative.
Advances 930
The markets would witness occasional bouts of volatility
Declines 518
and choppiness due to impending derivative segment
Same 65 expiry. Now, it is important that the Nifty finds buying
Total 1513 support at regularly, if the markets have to test its long
A/D Ratio 1.80 : 1 term 200-day SMA, which is placed around the 5717 level.
Source – NSE In the meanwhile the markets would take cues from the
Moving Averages S&P CNX NIFTY earnings season, forthcoming monetary policy, crude
50 Day SMA 5509.59
prices, news flow on the progress of monsoon, and the
◄Negative global markets. The support levels for Nifty are placed at
100 Day SMA 5579.31
5600, 5500, 5364 and 5262. The Nifty faces resistance at the
200 Day SMA 5717.59 ◄Negative
5718, 5885 and 5911 levels.
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 18722 18668 18802 18881 19095 18588 18454 18240
S&P CNX NIFTY 5634 5614 5662 5690 5765 5587 5539 5464
NIFTY JULY FUT. 5646 5624 5674 5703 5783 5595 5544 5465
Sanjay Bhatia (AVP – Technicals), Email Id sanjay@keynotecapitals.net Yahoo Chat Id: keytechnicals@yahoo.in
Keynote Capitals Ltd.
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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
Allahabad Bank 218.00 Buy Above 219.50 214 2.51 230 4.78
Areva 259.30 Buy Above 263.00 255 3.04 280 6.46
Bharti Airtel 411.15 Buy Above 413.00 405 1.94 430 4.12
Hind. Zinc 142.80 Buy Above 144.50 139 3.81 155 7.27
* 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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