The domestic stock markets opened flat but saw increased selling pressure due to S&P downgrading India's economic outlook. The markets pulled back from losses near 5161 support and ended the day with modest losses. Technically, market breadth was negative amid higher volumes. The report provides technical analysis and support/resistance levels for the markets. Stocks like ABB, Areva and BHEL are suggested short trades based on technical indicators.

1. Daily Technical Outlook
26th April 2012
Indices * Close % Chg. Mirroring the divergent global market cues, the domestic
BSE SENSEX 17151.29 -0.33 markets opened on a flat note. The overall trend remained
S&P CNX NIFTY 5202.00 -0.40 lackluster and listless. However, selling pressure increased
NIFTY APRIL FUT. 5198.60 -0.49 on back of S&P’s downgrading India’s outlook to negative.
India VIX 18.94 -1.61 The markets managed a pull back taking support around the
5161 level after Moody’s maintained its view on India. Short
S&P CNX NIFTY Technical Levels covering and selective buying support was witnessed as
Level 1 Level 2 Level 3 markets moved above the 5200 level. The markets ended the
Support 5161 5037 4955 day with modest losses to close near the lows for the day.
Resistance 5400 5681 5728 The top losers for the day were Wipro, Rel. Power, GAIL,
M&M, Siemens, IDFC, BHEL, Rel. Com; TCS and Ranbaxy.
Moving Averages S&P CNX NIFTY
50 Day SMA 5326.22 Technically, the market breadth remained negative
100 Day SMA 5127.34 amidst higher volumes. The global market cues are
200 Day SMA 5132.27 ◄ Crucial divergent. The domestic markets are likely to witness a
flat to positive opening. The prevailing technical
Volume (Lacs Shares) * negatives continued to weigh on market sentiment. The
25/04/12 24/04/12 % Chg. Stochastic and RSI are still placed below their respective
BSE 1776 1777 -0.06 averages. These conditions would lead to selling
NSE 5788 5441 6.38 pressure. However, positive technical conditions still
Total 7564 7218 4.80
hold good and would help the markets take support at
lower levels. The KST and MACD already are placed
Turnover ( ` Crores) * above their respective averages. The Nifty continues to
25/04/12 24/04/12 % Chg. sustain above its long-term moving average the 200-day
BSE 2076.55 2308.53 -10.05 SMA. Moreover, the Nifty’s 50-day SMA remains placed
NSE 10478.13 11541.23 -9.21
above Nifty’s 100-day SMA and 200-day SMA, the later
being called the “Golden Cross” breakout. These
NSE F&O 198860.07 150123.31 32.46
positive technical conditions would prompt buying
Total 211414.75 163973.07 28.93
support at lower levels. Further the Nifty’s 100-day SMA
F&O Contracts Traded (NSE) * is on verge of moving above Nifty’s 200-day SMA. As and
when this happens buying support is likely to gain
25/04/12 24/04/12 % Chg.
momentum. However, The ADX line, +DI line and –DI line
Index Fut. 862984 643439 34.12
continue to move sideways indicating that markets
Stock Fut. 1075788 1012629 6.24 would continue to remain range bound. The market
Index Opt. 5420962 3753825 44.41 sentiment remains cautious. Now, it is important that the
Stock Opt. 191376 244077 -21.59 markets witness buying support at lower levels for the
Total 7551110 5653970 28.55 Nifty to take support. The 200-day SMA remains a crucial
support level for the markets. The markets will witness
Market Breadth (NSE) * intermediate bouts of volatility and choppiness due to
Advances 465 the derivative segment expiry. In the meanwhile the
Declines 1005 markets would take cues from the forthcoming Q4
Same 70 results along with global markets and the crude prices.
Total 1540 The support levels for Nifty are placed at 5161, 5037 and
A/D Ratio 0.46 : 1 4955. The Nifty faces resistance at the 5400, 5681, 5728 and
NOTE - *- Source – BSE & NSE 5885 levels.
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
ABB 782.35 Sell Below 778 791.00 1.67 750 3.60
TGT of 150
Achieved
given Sell @
162 on
Areva 150.75 Sell Below 149 153.00 2.68 140 6.04 23/04/12
TGT of 230
Achieved
given Sell @
243 on
BHEL 231.95 Sell Below 230 234.50 1.96 220 4.35 23/04/12
* 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 S3
BSE SENSEX 17151 17140 17261 17370 17601 17030 16910 16679
S&P CNX NIFTY 5202 5200 5239 5275 5350 5163 5124 5049
NIFTY MAY FUT. 5235 5232 5276 5318 5403 5190 5146 5061
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
Aban, ACC, BOI, Cipla, Coal India, Delta Corp; Exide, Federal Bank, GAIL, GSPL, HCC, ICICI Bank, IDBI Bank,
IDFC, IFCI, Indian Hotels, India Cement, IRB, Jp Associates, JP Power, JSW Energy, Kotak Bank, LITL, MLL,
Mphasis, MTNL, Oil India, Petronet, PFC, Powergrid, Praj, PC, Punj Lloyd, Ranbaxy, Raymod, Rel.Comm; REC,
Rel. Power, Ruchi Soya, SBI, Sintex, Sun TV, Syndicate Bank, Tata Comm; TTML
APIL, Crompton Greaves, Hero Motocorp, HPCL, IVRCL, Jubilant Food, Pantaloon Retail, Sesa Goa, Sterlite
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