The domestic markets opened flat but drifted lower through the day due to higher-than-expected monthly inflation data, which increased selling pressure. The markets failed to show resilience and closed near the day's lows with moderate losses. Technically, market breadth remained negative amid lower volumes, and various technical indicators were below their averages, signaling further downside. The markets are expected to open lower and remain under pressure from negative technicals.

1. Daily Technical Outlook
15th May 2012
Indices * Close % Chg. The domestic markets witnessed a flat opening. The markets
BSE SENSEX 16215.84 -0.47 drifted to move in a range bound trend ahead of monthly
S&P CNX NIFTY 4907.80 -0.43 inflation data. Higher then expected monthly inflation data
NIFTY May FUT. 4888.25 -0.87 saw the markets move lower on back of increased selling
India VIX 23.26 3.46 pressure. The markets drifted lower and markets failed to
show any resilience as buying support remained absent. The
S&P CNX NIFTY Technical Levels markets ended the day with moderate losses to close near
Level 1 Level 2 Level 3 the lows for the day. The top losers for the day L&T,
Support 4777 4742 4636 Ranbaxy, BPCL, Bajaj Auto, Maruti, Infosys Tech; Asian
Resistance 4950 5070 5106 Paints, Sun Pharma, Tata Power and Dr. Reddys.
Moving Averages S&P CNX NIFTY Technically, the market breadth remained negative
50 Day SMA 5234.44 amidst lower volumes. The global market cues are
100 Day SMA 5164.38 subdue. The domestic markets are likely to witness a gap
200 Day SMA 5099.25 ◄ Crucial down opening. The prevailing technical negatives
continue to hold good and are weighing on the market
Market Breadth (NSE) * sentiment. The Nifty remains placed below its 50-day
Advances 455 SMA, 100-day SMA and 200-day SMA. The KST, MACD
Declines 1014 and RSI are still placed below their respective averages.
Same 77 More so the KST and MACD are placed in the negative
Total 1546 territory and warn of impending selling pressure. These
A/D Ratio 0.45 : 1
negative technical conditions would lead to further
selling pressure. The ADX line and +DI line are moving
Volume (Lacs Shares) * sideways, but –DI line is placed at the 33.88 level
14/05/12 11/05/12 % Chg. indicating sellers are gaining strength. However, a few
BSE 1641 1913 -14.22
positives still hold good. The Stochastic has moved
above its average. Moreover, the Stochastic and RSI are
NSE 5174 6251 -17.24
placed in the over sold zone. The Nifty’s 50-day SMA
Total 6815 8164 -16.53
remains placed above Nifty’s 100-day SMA and 200-day
Turnover ( ` Crores) * SMA. More so, the Nifty’s 100-day SMA is placed above
14/05/12 11/05/12 % Chg.
the Nifty’s 200-day SMA. These positive technical
conditions would prompt short covering and selective
BSE 1832.46 1923.53 -4.73
buying support at lower levels. The market sentiment
NSE 8960.60 9264.29 -3.28
remains negative. Now, it is important that the markets
NSE F&O 71595.97 123628.56 -42.09 witness buying support at regular intervals for the Nifty
Total 82389.03 134816.38 -38.89 to move higher. The 200-day SMA remains a crucial
resistance level for the markets. In the meanwhile the
F&O Contracts Traded (NSE) *
markets would take cues from the monthly inflation data,
14/05/12 11/05/12 % Chg.
USDINR, Q4 results season along with global markets
Index Fut. 324851 550359 -40.97 and the crude prices. The support levels for Nifty are placed
Stock Fut. 386695 490196 -21.11 at 4777, 4742 and 4636. The Nifty faces resistance at the
Index Opt. 2040494 3778388 -46.00 4950, 5070, 5106 and 5250 levels.
Stock Opt. 148005 181283 -18.36
Total 2900045 5000226 -35.42
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
Adani Enterprises 143.60 Sell Below 142.90 146.50 2.52 135 5.53
Bombay Dying 401.85 Sell Below 395.00 402.00 1.77 380 3.80
IB Realestate 52.65 Sell Below 52.15 54.75 4.99 46.5 10.83
* 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 16216 16244 16363 16509 16775 16097 15978 15713
S&P CNX NIFTY 4908 4913 4952 4996 5079 4869 4830 4748
NIFTY MAY FUT. 4888 4901 4937 4986 5071 4852 4816 4731
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. Stocks to watch out today
Adani Enterprises, Adani Ports, Aurobindo Pharma, BEL, BGR Energy, Cairn India, Crompton Greaves, DCB,
Educomp, FT, Fortis Healthcare, GMDC, GMR Infra, Godrej Inds, HDFC, HDFC Bank, HOECL, IDBI Bank, IFCI,
IVRCL, ONGC, Orchid Chemicals, PTC, Tata Global,
Asian Paints, Bajaj Auto, BPCL, Colgate, Dabur, L&T, Mphasis, Sobha, ZEEL
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