Keynote technicals daily report for 220512


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Keynote technicals daily report for 220512

  1. 1. Daily Technical Outlook 22nd May 2012 Indices * Close % Chg. Mirroring the divergent global market cues the domestic BSE SENSEX 16183.26 0.19 markets witnessed a flat opening. Selective buying support S&P CNX NIFTY 4906.05 0.30 along with short covering was witnessed as markets moved NIFTY May FUT. 4893.90 0.10 higher. But lack of follow up buying support saw the Nifty India VIX 23.92 1.57 struggle around the 4950 resistance level. The markets ended the day with modest gains to close near the lows for S&P CNX NIFTY Technical Levels the day. The top losers for the day were Wipro, ITC, Infosys Level 1 Level 2 Level 3 Tech; Jindal Steel, Powergrid, HUL, ACC, Ambuja Cement,Support 4777 4742 4624 Sterlite and NTPC. The top gainers for the day were TataResistance 4950 5070 5106 Power, Bank of Baroda, Rel. Infra, SBI, BHEL, Maruti, L&T, Coal India, Hindalco and Kotak Bank. Moving Averages S&P CNX NIFTY50 Day SMA 5194.98 Technically, the market breadth remained positive amidst100 Day SMA 5172.23 lower volumes, indicating lack of participation at higher200 Day SMA 5082.73 ◄ Critical levels. The global market cues are positive. The domestic markets are likely to witness a gap up opening. As we Market Breadth (NSE) * had indicated the pull back rally continued on theAdvances 943 bourses. The RSI and the Stochastic are already placedDeclines 504 above their respective averages. Moreover, theSame 81 Stochastic and RSI are still placed around the over soldTotal 1528 zone. Further the Nifty’s 50-day SMA remains placedA/D Ratio 1.87 : 1 above Nifty’s 100-day SMA and 200-day SMA. More so, the Nifty’s 100-day SMA is placed above the Nifty’s 200- Volume (Lacs Shares) * day SMA. These positive technical conditions would 21/05/12 18/05/12 % Chg. prompt further short covering and selective buyingBSE 1591 2024 -21.39 support. However, the prevailing technical negatives continue to hold good and are likely to cap upside gains.NSE 4951 5896 -16.04 The Nifty remains placed below its 50-day SMA, 100-dayTotal 6542 7920 -17.41 SMA and 200-day SMA. Further the KST and MACD are Turnover ( ` Crores) * placed below their respective averages and also in the 21/05/12 18/05/12 % Chg. negative territory and warn of impending selling pressure. These negative technical conditions wouldBSE 1579.46 2024.18 -21.97 lead to selling pressure especially at higher levels. TheNSE 7812.70 10581.01 -26.16 ADX line is moving higher but the -DI line has startedNSE F&O 97954.37 155862.13 -37.15 moving lower indicating sellers are covering shorts,Total 107346.53 168467.32 -36.28 while the +DI line is moving lower. The market sentiment remains tentative but pull back rally is likely to continue. F&O Contracts Traded (NSE) * Now, it is important that the markets witness follow up 21/05/12 17/05/12 % Chg. buying support at higher levels for the Nifty to moveIndex Fut. 383573 619222 -38.06 above the 4950 resistance level and test theStock Fut. 425930 591779 -28.03 psychologically important 5000 level. In the meanwhileIndex Opt. 2979944 4877313 -38.90 the markets would take cues from the USDINR, globalStock Opt. 216427 362098 -40.23 markets and the crude prices. The support levels for NiftyTotal 4005874 6450412 -31.67 are placed at 4777, 4742, 4624 and 4530. The Nifty faces resistance at the 4950, 5070, 5106 and 5250 levels.NOTE - *- Source – BSE & NSESanjay Bhatia (AVP – Technicals), Email Id Yahoo Chat Id: Keynote Capitals Ltd. th The Ruby, 9 Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322
  2. 2. Short Term Trading Ideas Based On Technical Analysis (5 - 7 Days) Stop Initiation Stop Loss Target Stock Close Action Price Loss * (%) Target (%) RemarksAsian Paints 3754.25 Buy Above 3760 3697 1.68 3900 3.72Bank of Baroda 666.35 Buy Above 669 655 2.09 700 4.63 TGT of 900 Achieved given Buy @ 875 onBata 888.95 Buy Above 890 876 1.57 920 3.37 21/05/12* 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 S3BSE SENSEX 16183 16210 16271 16359 16508 16122 16062 15913S&P CNX NIFTY 4906 4911 4933 4960 5009 4884 4862 4813NIFTY MAY FUT. 4894 4903 4923 4952 5002 4874 4853 4804 Keynote Capitals Ltd. th The Ruby, 9 Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322
  3. 3. Stocks to watch out todayAban, Apollo Tyre, Arvind, Bombay Dying, Coal India, Divis Labs, DLF, Federal Bank, GE Shipping, Godrej Inds; Grasim,GVK, Havells, HCC, Hindalco, HOECL, IBRealestate, ICICI Bank, IDFC, JP Associates, Kotak Bank, L&T, M&M, MRF, NHPC,Oriental Bank of Commerce, PFC, Reliance, Reliance Infra, SAIL, SBI, SCI, Sun Pharma, Suzlon, Tata Power, Tata Steel,Union Bank, Vijaya Bank, Yes BankBPCL, OFSS, Oil India, OnMobile, Opto Circuit, Tata Chemicals, Tulip Telecom, Uniphos Disclaimer This document is not for public distribution and has been furnished to you solely for your information and must not be reproduced or redistributed to any other person. Persons into whose possession this document may come are required to observe these restrictions. This material is for the personal information of the authorized recipient, and we are not soliciting any action based upon it. This report is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. It is for the general information of clients of Keynote Capitals Ltd. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. We have reviewed the report, and in so far as it includes current or historical information, it is believed to be reliable though its accuracy or completeness cannot be guaranteed. Neither Keynote Capitals Ltd., nor any person connected with it, accepts any liability arising from the use of this document. The recipients of this material should rely on their own investigations and take their own professional advice. Price and value of the investments referred to in this material may go up or down. Past performance is not a guide for future performance. Certain transactions -including those involving futures, options and other derivatives as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. Reports based on technical analysis centers on studying charts of a stock’s price movement and trading volume, as opposed to focusing on a company’s fundamentals and as such, may not match with a report on a company’s fundamentals. Opinions expressed are our current opinions as of the date appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein. We and our affiliates, officers, directors, and employees world wide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company (ies) discussed herein or act as advisor or lender / borrower to such company (ies) or have other potential conflict of interest with respect to any recommendation and related information and opinions. The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report. No part of this material may be duplicated in any form and/or redistributed without Keynote Capitals Ltd’s., prior written consent. Keynote Capitals Ltd. th The Ruby, 9 Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322