The document provides a daily technical outlook for the Indian stock market. It summarizes that the market is overbought and correction is likely. Key indices closed with marginal losses and technical indicators suggest impending selling pressure. Support and resistance levels are given for the indices. Specific stocks that are likely to be watched are also mentioned.

1. Daily Technical Outlook
3rd August 2012
Indices * Close % Chg.
BSE SENSEX 17224.36 -0.19
Markets overbought, correction likely
S&P CNX NIFTY 5227.75 -0.24
Mirroring the divergent global market cues the domestic
NIFTY AUG. FUT. 5246.70 -0.18
markets witnessed a flat opening. The over all trend
India VIX 16.77 1.94 remained range bound and listless as Nifty once again
S&P CNX NIFTY Technical Levels struggled to move above the 5250 resistance level. Selling
pressure was witnessed at regular intervals especially around
Level 1 Level 2 Level 3
the 5250 level. The markets ended the day with marginal
Support 5106 5047 4950
losses to close near the highs for the day. The top losers for
Resistance 5250 5333 5379 the day were DLF, Bharti Airtel, Hindalco, Sesa Goa, HDFC,
Simple Moving Averages S&P CNX NIFTY GAIL, BPCL, Coal India, PNB and Rel. Infra.
50 Day SMA 5133.64
Technically, the market breadth remained positive amidst
100 Day SMA 5149.26 lower volumes. The global market cues are weak as
200 Day SMA 5106.13 ◄Critical Mario Draghi ECB Chief disappoints the global markets.
The domestic markets are likely to witness a flat to
Market Breadth * BSE NSE
negative opening. The prevailing technical negatives are
Advances 1508 813
weighing on the market sentiment. The Stochastic is
Declines 1179 641 placed in the over bought zone. The MACD remains
Same 130 83 placed below its average. The KST has once again
Total 2817 1537 slipped in the negative, while the MACD is already placed
A/D Ratio 1.27 : 1 1.27 : 1 in the negative territory and these warn of impending
selling pressure. The Nifty’s 50-day SMA remains placed
Volume (Lacs Shares) * below its 100-day SMA. These negative technical
02/08/12 01/08/12 % Chg. conditions would prompt further bouts of profit taking
BSE 1686 1924 -12.37 and selling pressure especially at higher levels. However,
NSE 5576 5509 1.22 a few technical positives still hold good. The RSI, KST
Total 7262 7433 -2.30 and Stochastic remain placed above their respective
averages. The Nifty remains placed above its 50-day
Turnover ( ` Crores) * SMA, 100-day SMA and 200-day SMA. More so the Nifty’s
02/08/12 01/08/12 % Chg. 50-day SMA is placed above the Nifty’s 200-day SMA.
BSE 1756.07 1917.98 -8.44 These positives would lead to buying support at lower
NSE 9345.22 9000.04 3.84
levels. The ADX line, the +DI line and the –DI line are
moving sideways, indicating a range bound and
NSE F&O 55596.18 81501.19 -31.78
sideways trend. The market sentiment remains tentative
Total 66697.47 92419.21 -27.83
as Nifty continues to struggle around the 5250 resistance
F&O Contracts Traded (NSE) * level. Now it is important that the markets witness follow
02/08/12 01/08/12 % Chg.
up buying support at higher levels for the Nifty to move
higher and close above the 5250 level. In the meanwhile
Index Fut. 246418 297692 -17.22
the markets would take cues from the Rupee, global
Stock Fut. 306701 407252 -24.69
market cues and the crude prices. The support levels for
Index Opt. 1446881 2235429 -35.28 Nifty are placed at 5106, 5047, 5000, 4950 and 4859. The
Stock Opt. 110561 152877 -27.68 Nifty faces resistance at the 5250, 5333, 5379 and 5464
Total 2110561 3093250 -26.86 levels.
NOTE - * - Source – BSE & NSE
Sanjay Bhatia (AVP – Technical Research), Email sanjay@keynotecapitals.net Yahoo Id: keytechnicals@yahoo.in
Keynote Capitals Ltd.
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The Ruby, 9 Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

2. Jaldi 5
(Short Term Technical Ideas for 5 Trading Days)
Stop
Initiation Stop Loss Target
Stock Close Action Price Loss * (%) Target (%) Remarks
APIL 391.40 Buy Above 394 382.00 3.05 420 6.60
Colgate 1171.00 Buy Above 1175 1157.00 1.53 1215 3.40
JSW Steel 701.35 Buy Above 706 686.00 2.83 750 6.23
* Stop Losses are to be considered strictly on closing basis.
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 17224 17209 17261 17298 17387 17172 17120 17032
S&P CNX NIFTY 5228 5225 5240 5252 5279 5213 5198 5171
NIFTY AUG. FUT. 5247 5241 5259 5271 5302 5228 5210 5179
Stocks To Watch Out Today
ACC, APIL, Ashok Leyland, Colgate, Cummins, ITC, Jet Airways, JSW Steel, L&T, NTPC, OFSS, ONGC, PTC, Punj Lloyd,
Raymond, REC, Tata Global, itan, TTK Prestige,
BPCL, HPCL
Keynote Capitals Ltd.
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The Ruby, 9 Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

3. NOTE:
TECHNICAL ANALYSIS ABBREVATIONS
SMA – Simple Moving Average
EMA – Exponential Moving Average
WMA – Weighted Moving Average
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