1. Daily Technical Outlook
7th May 2012
Indices * Close % Chg. Mirroring the negative global market cues, the domestic
BSE SENSEX 16831.08 -1.87 markets opened on a subdue note. Sustained selling
S&P CNX NIFTY 5086.85 -1.96 pressure was witnessed as markets drifted lower. The
NIFTY May FUT. 5097.95 -1.96 markets showed no signs of resilience against selling
India VIX 21.12 9.71 pressure. Buying support remained absent as markets
slipped below its long term 200-day SMA. The markets ended
S&P CNX NIFTY Technical Levels the day with moderate losses to close near the lows for the
Level 1 Level 2 Level 3 day. The top losers for the day were Bank of Baroda, BHEL,
Support 5070 4950 4777 PNB, Hero Motocorp, L&T, Axis Bank, SBI, Bajaj Auto, Kotak
Resistance 5118 5250 5333 Bank and Rel. Infra.
Moving Averages S&P CNX NIFTY Technically, the market breadth remained negative
50 Day SMA 5282.50 amidst higher volumes. The global market cues are
100 Day SMA 5145.58 negative. The domestic markets are likely to witness a
200 Day SMA 5117.31 ◄ Crucial gap down opening. The prevailing technical negatives
continued to weigh on the market sentiment. Lack of
Volume (Lacs Shares) * follow up buying support has also not helped the matters
04/05/12 03/05/12 % Chg. either. The Stochastic and RSI have slipped below their
BSE 2947 2021 45.82 respective averages. The MACD is already placed below
NSE 6619 5560 19.06 its average. More so the KST is placed in the negative
Total 9566 7581 26.19
territory. The Nifty remains placed below its 50-day SMA,
which is a short term negative. These negative technical
Turnover ( ` Crores) * conditions still hold good and would lead to selling
04/05/12 03/05/12 % Chg. pressure. However, a few positives still hold good. The
BSE 2628.94 1921.48 36.82 KST remains placed above its average. The Nifty
NSE 11474.63 10004.24 14.70
continues to sustain above its long-term moving average
the 200-day SMA. Moreover, the Nifty’s 50-day SMA
NSE F&O 111960.57 81207.17 37.87
remains placed above Nifty’s 100-day SMA and 200-day
Total 126064.14 93132.89 35.36
SMA, the later being called the “Golden Cross” breakout.
F&O Contracts Traded (NSE) * Moreso, the Nifty’s 100-day SMA has crossed above the
Nifty’s 200-day SMA. These positive technical conditions
04/05/12 03/05/12 % Chg.
would prompt buying support at lower levels. However,
Index Fut. 514892 387927 32.73
The ADX line, +DI line and –DI line continue to move
Stock Fut. 473942 419867 12.88 sideways, indicating that markets would continue to
Index Opt. 3190368 2159141 47.76 remain range bound. The market sentiment remains
Stock Opt. 178221 147872 20.52 cautious. Now, it is important that the markets witness
Total 4357423 3114807 34.08 buying support at regular intervals for the Nifty to move
higher. The 200-day SMA remains a crucial support level
Market Breadth (NSE) * for the markets. In the meanwhile the markets would take
Advances 259 cues from the USDINR, Q4 results season along with
Declines 1230 global markets and the crude prices. The support levels for
Same 57 Nifty are placed at 5070, 4950 and 4777. The Nifty faces
Total 1546 resistance at the 5118, 5250 and 5333 levels.
A/D Ratio 0.21 : 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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The Ruby, 9 Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. 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
TGT of 82
Achieved
given Sell @
87 on May 3&
Apollo Tyre 80.75 Sell Below 79.75 82.35 3.26 74 7.21 4
TGT of 300
Achieved
given Sell @
310 on
Century Textiles 302.80 Sell Below 300.00 307.00 2.33 285 5.00 04/05/12
TGT of 300
Achieved
given Buy @
319 on
Cipla 326.00 Buy Above 330.00 326.00 1.21 339 2.73 03/05/12
TGT of 900
Achieved
given Buy @
840 on
Divis Labs 860.60 Buy Above 875.00 841.00 3.89 950.00 8.57 30/04/12
* Stop Losses are to be considered strictly on closing basis.
Keynote Capitals Ltd.
th
The Ruby, 9 Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

3. Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 16831 16910 17043 17254 17599 16698 16565 16220
S&P CNX NIFTY 5087 5112 5153 5218 5325 5046 5005 4898
NIFTY MAY FUT. 5098 5121 5159 5219 5318 5060 5022 4923
Stocks to watch out today
Aban, AB Nuvo, APIL, Asian Paints, Axis Bank, Bank of Baroda, Bank of India, BGR Energy, FT, Fortis
Healthcare, IDBI Bank, M&M
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