The domestic stock markets opened flat but saw profit-taking in the morning. The overall trend remained range-bound and listless, with markets showing indecisiveness as follow-up buying support remained absent. Key indices ended the day with marginal losses near the lows. Technically, market breadth was positive but selling was seen in index heavyweights. The markets are expected to have a flat opening and face selling pressure at higher levels due to prevailing technical negatives.

1. Daily Technical Outlook
5th January 2012
Indices * Close % Chg.
The domestic markets witnessed a flat opening. Profit taking
BSE SENSEX 15882.64 -0.36
was witnessed in the morning trade after Tuesday’s rally.
S&P CNX NIFTY 4749.65 -0.33
However, the over all trend remained range bound and
NIFTY JAN. FUT. 4760.20 -0.48
listless. Markets showed indecisiveness as follow up buying
India VIX 26.41 0.95 support remained absent. The markets ended the day with
S&P CNX NIFTY Technical Levels marginal losses to close near the lows for the day. The top
losers for the day were Bajaj Auto, M&M, ACC, Bharti Airtel,
Level 1 Level 2 Level 3
HUL, Ambuja Cements, DLF, Kotak Bank, Hero Motocorp
Support 4747 4563 4481
and TCS.
Resistance 4987 5037 5161
Moving Averages S&P CNX NIFTY
Technically, the market breadth remained positive amidst
higher volumes, indicating selling was witnessed in
50 Day SMA 4917.91
◄Negative index heavyweights. The global market set of cues are
100 Day SMA 4958.25
mix. The domestic markets are likely to witness a flat
200 Day SMA 5267.08 ◄Negative opening. The Nifty managed to sustain above the 4747
Volume (Lacs Shares) * support level, however, the markets failed to witness
follow up buying support, shows tentativeness on part of
04/01/12 03/01/12 % Chg.
participants. The MACD, Stochastic, RSI, and KST are
BSE 2657 1574 68.81
placed above their respective averages. These technical
NSE 5697 5221 9.11 conditions would help in fueling buying support.
Total 8354 6795 22.94 However, the prevailing technical negatives continue to
hold good and are likely to weigh on market sentiment.
Turnover ( ` Crores) *
The KST and MACD are still placed in the negative
04/01/12 03/01/12 % Chg. territory and warn of impending selling pressure. The
BSE 2183.70 1367.38 59.70 Nifty continues to trade below its 50-day SMA and 200-
NSE 9715.83 8209.84 18.34 day SMA. The 50-day SMA remains placed below the 100-
NSE F&O 86385.04 87109.01 -0.83 day SMA. All these conditions would lead to selling
Total 98284.57 96686.23 1.65 pressure especially at higher levels. The ADX, -DI line
and +DI line are moving sideways, indicating a range
F&O Contracts Traded (NSE) * bound trend. The market sentiment remains cautious.
04/01/12 03/01/12 % Chg. Now, it is important that the Nifty witnesses follow up
Index Fut. 512984 518784 -1.12 buying support at higher levels. Nifty should continue to
Stock Fut. 455235 445577 2.17 sustain above the 4747 level for it to move higher and
Index Opt. 2561138 2598880 -1.45
test the 4987 level. In case it fails then increased selling
pressure is likely and Nifty could test the 4563 support
Stock Opt. 120581 137364 -12.22
level. In the meanwhile the markets would take cues from
Total 3649938 3700605 -1.47
the forthcoming earnings season, which would kick start
Market Breadth (NSE) * from the next week, the global markets and the crude
Advances 791
prices. The support levels for Nifty are placed at 4747, 4563,
4481, 4353 and 4003. The Nifty faces resistance at the 4987,
Declines 655
5037 and 5161 levels.
Same 72
Total 1518
A/D Ratio 1.21 : 1
NOTE - *- Source – BSE & NSE
Sanjay Bhatia (AVP – Technicals), Email Id sanjay@keynotecapitals.net Yahoo Chat Id: keytechnicals@yahoo.in
Keynote Capitals Ltd.
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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 315.30 Buy Above 316.00 309.70 1.99 330 4.43
Axis Bank 848.15 Buy Above 850.00 829.30 2.44 896 5.41
HCL Tech. 418.40 Buy Above 420.00 411.90 1.93 438 4.29
Tata Motors 201.20 Buy Above 202.50 192.00 5.19 225 11.11
* 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 15883 15903 15984 16086 16268 15802 15721 15538
S&P CNX NIFTY 4750 4754 4779 4808 4862 4725 4700 4646
NIFTY JAN. FUT. 4760 4766 4794 4827 4888 4732 4704 4643
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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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