The domestic markets witnessed a flat opening and remained range bound with lackluster volumes. Follow up buying support remained elusive after yesterday's rally. The markets ended the day flat, closing near the highs. Technically, the market breadth remained robust with higher volumes, which is positive. The markets are likely to witness a flat opening and take cues from upcoming results and data.

1. Daily Technical Outlook
12th January 2012
Indices * Close % Chg.
The domestic markets witnessed a flat opening. The over all
BSE SENSEX 16175.86 0.07
trend remained range bound amidst lackluster volumes.
S&P CNX NIFTY 4860.95 0.24
Follow up buying support remained elusive after yesterday’s
NIFTY JAN. FUT. 4872.35 0.04
smart rally. Occasional bouts of profit taking and selling
India VIX 24.54 2.25 pressure were witnessed. The markets ended the day flat to
S&P CNX NIFTY Technical Levels close near the highs for the day. The top gainers for the day
were BPCL, Hindalco, Sterlite, Sesa Goa, DLF, JP
Level 1 Level 2 Level 3
Associates, SAIL, IDFC, Rel. Power and Axis Bank.
Support 4747 4563 4481
Resistance 4987 5037 5161 Technically, the market breadth remained robust amidst
Moving Averages S&P CNX NIFTY
higher volumes, which is a positive sign for the markets.
The global market set of cues are divergent. The
50 Day SMA 4867.42
◄Negative domestic markets are likely to witness a flat opening. The
100 Day SMA 4939.29
Nifty has managed to sustain above the 4747 level, which
200 Day SMA 5247.65 ◄Negative augurs well for the markets. The Stochastic, MACD, RSI,
Volume (Lacs Shares) * and KST are placed above their respective averages,
which would help in fueling further buying support. The
11/01/12 10/01/12 % Chg.
KST and MACD are placed in the positive territory.
BSE 2875 2693 6.76
Moreover, the Nifty is placed above the October 2011
NSE 7983 7226 10.49 descending trend line. which is a positive sign for the
Total 10858 9919 9.47 markets. However, the prevailing technical negatives
continue to hold good and would cap the upside gains.
Turnover ( ` Crores) *
More so the Stochastic is placed in the over bought zone,
11/01/12 10/01/12 % Chg. which would lead to intermediate outs of profit taking
BSE 2620.59 2555.43 2.55 and selling pressure. The Nifty continues to trade below
NSE 11715.59 11011.07 6.40 its 50-day SMA and 200-day SMA. The 50-day SMA also
NSE F&O 86203.25 107862.87 -20.08 remains placed below the 100-day SMA. All these
Total 100539.43 121429.37 -17.20 conditions would lead to selling pressure especially at
higher levels. The ADX, -DI line and +DI line are moving
F&O Contracts Traded (NSE) * sideways, indicating a range bound trend. The market
11/01/12 10/01/12 % Chg. sentiment remains tentatively positive. Now, it is
Index Fut. 399646 549015 -27.21 important that the markets witness follow up buying
Stock Fut. 566850 525827 7.80 support for the markets to move higher and test the 4987
Index Opt. 2393442 3273973 -26.89
level. Profit taking and selling pressure are likely at
higher levels. In the meanwhile the markets would take
Stock Opt. 212284 163432 29.89
cues from the IIP numbers, Q3 results of Infosys Tech.,
Total 3572222 4512247 -18.43
the global markets, the crude prices and news flow from
Market Breadth (NSE) * the forthcoming RBI’s monetary policy. The support levels
Advances 1030
for Nifty are placed at 4747, 4563, 4481, 4353 and 4003. The
Nifty faces resistance at the 4987, 5037 and 5161 levels.
Declines 471
Same 54
Total 1555
A/D Ratio 2.19 : 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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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
TGT of 625
Achieved
given Buy @
596.50 on
ABB 639.95 Buy Above 642 631.00 1.71 666 3.74 04/01/12
TGT of 365
Achieved
given Buy @
342 on
APIL 363.20 Buy Above 366 349.00 4.64 404 10.38 11/01/12
Dr. Reddys 1650.75 Buy Above 1657 1629.00 1.69 1718 3.68
* 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 16176 16183 16238 16300 16417 16121 16066 15949
S&P CNX NIFTY 4861 4860 4878 4896 4931 4843 4824 4789
NIFTY JAN. FUT. 4872 4855 4906 4939 5023 4822 4771 4687
Keynote Capitals Ltd.
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