The domestic Indian markets witnessed a negative opening and sustained selling pressure throughout the day, closing near the lows. Key indices like the BSE Sensex and Nifty fell around 2.7%. Technically, market breadth remained negative with lower volumes while most technical indicators were below their averages, suggesting further bouts of profit taking. However, support is expected at lower levels as indices remain above key moving averages.

1. Daily Technical Outlook
28th February 2012
Indices * Close % Chg. Mirroring the divergent global market cues the domestic
BSE SENSEX 17445.75 -2.67 markets witnessed a negative opening. Sustained selling
S&P CNX NIFTY 5281.20 -2.73 pressure was witnessed through out the day. The markets
NIFTY MAR. FUT. 5338.60 -2.71 showed no resilience against selling pressure in absence of
India VIX 27.38 10.31 buying support. The extended losses in the afternoon session
to end the day with large losses. It closed near the lows for
S&P CNX NIFTY Technical Levels the day. The top losers for the day were Sesa Goa, SAIL,
Level 1 Level 2 Level 3 Hero Motocorp., Rel. Power, PNB, IDFC, Hindalco, Axis
Support 5161 5037 4955 Bank, Tata Steel and Jindal Steel.
Resistance 5327 5400 5681
Technically, the market breadth remained negative
Moving Averages S&P CNX NIFTY amidst lower volumes. The global market set of cues are
50 Day SMA 5049.31 largely positive. The domestic markets are likely to
◄Positive
100 Day SMA 5023.17 witness a positive opening. The few prevailing technical
200 Day SMA 5170.51 ◄Positive
negatives continued to weigh on the market sentiment as
markets cracked sharply and extended losses yesterday.
Volume (Lacs Shares) * The Stochastic, MACD, RSI and KST all are placed below
27/02/12 24/02/12 % Chg. their respective averages, which would lead to regular
BSE 2819 2949 -4.41 bouts of profit taking and selling pressure. However,
NSE 8700 10350 -15.94
buying support is expected to be witnessed at lower
levels as Nifty remains placed above its key averages,
Total 11519 13299 -13.38
viz; 50-day, 100-day and 200-day SMA. Moreover the KST
Turnover ( ` Crores) * and MACD are still placed in the positive territory. The
27/02/12 24/02/12 % Chg.
Nifty remains placed above its April’2011 descending
trend line. Moreover, Nifty’s 50-day SMA has moved
BSE 2550.63 2900.11 -12.05
above Nifty’s 100-day SMA, The sharp fall witnessed for
NSE 13366.78 23569.91 -43.29
the last couple of days has led the Stochastic to move in
NSE F&O 100876.92 86945.06 16.02 the oversold zone on the daily charts, which would result
Total 116794.33 113415.08 2.98 in short covering at regular intervals. All these positive
conditions would help in fueling buying support at
F&O Contracts Traded (NSE) *
regular lower levels. The market sentiment remains
27/02/12 24/02/12 % Chg.
cautious. Rise in crude prices remains a cause of
Index Fut. 582153 527792 10.30 concern. Now, it is important that the markets witness
Stock Fut. 561941 565866 -0.69 buying support at lower levels for the markets to move
Index Opt. 2418309 1906502 26.85 higher and test the 5681 resistance level. Intermediate
Stock Opt. 137906 122649 12.44 bouts of volatility and choppiness are likely to be
Total 3700309 3122809 16.88 witnessed as slew of events are lined up in the next
month. In the meanwhile the markets would take cues
Market Breadth (NSE) * from the news flow on state elections, RBI,s monetary
Advances 201 policy, Union Budget, the global markets and ofcourse
Declines 1308 the crude prices. The support levels for Nifty are placed at
Same 45 5161, 5037 and 4955. The Nifty faces resistance at the 5327,
Total 1554
5400 and 5681levels.
A/D Ratio 0.15 : 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
Axis Bank 1114.50 Sell Below 1110 1149 3.51 1023 7.84
TGT of 1700
Achieved
given Sell @
1753 on
Bajaj Auto 1706.10 Sell Below 1700 1729 1.71 1636 3.76 27/02/12
DLF 214.90 Sell Below 213 224 4.93 190 10.80
* 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 17446 17601 17820 18194 18788 17227 17007 16414
S&P CNX NIFTY 5281 5333 5398 5515 5696 5216 5151 4970
NIFTY MAR. FUT. 5339 5381 5436 5533 5685 5284 5229 5077
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

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