The domestic stock markets witnessed modest losses and closed near their daily lows, mirroring divergent global market cues. Key indices like the BSE Sensex and Nifty fell around 0.8-0.9%. The markets continued facing sustained selling pressure ahead of the upcoming derivative contracts expiry. Most technical indicators were below their averages, suggesting further downside. Support for Nifty is seen at 5250, 5215 and 5118 levels while resistance is at 5333, 5386 and 5464. The market sentiment remains cautious with an absence of buying support.

1. Daily Technical Outlook
30th August 2012
Indices * Close % Chg. Markets over sold but under pressure
BSE SENSEX 17490.81 -0.80
S&P CNX NIFTY 5287.80 -0.88 Mirroring the divergent global market cues, the domestic
NIFTY AUG. FUT. 5296.60 -0.92 markets witnessed a flat opening. The markets continued to
India VIX 16.74 2.38 witness sustained selling pressure ahead of the derivative
segment expiry. The markets failed to show any resilience as
S&P CNX NIFTY Technical Levels buying support continued to remain elusive. The markets
Level 1 Level 2 Level 3 ended the day with modest losses to close near the lows for
Support 5250 5215 5118 the day. The top losers for the day were JP Associates, SAIL,
Resistance 5333 5386 5464 Sesa Goa, DLF, Sterlite, Bajaj Auto, Hero Motocorp, Bharti
Airtel, BHEL and Hindalco.
Simple Moving Averages S&P CNX NIFTY
50 Day SMA 5251.51 Technically, the market breadth remained negative
100 Day SMA 5159.12 amidst lower volumes. The global market cues are
200 Day SMA 5118.43 ◄Critical negative ahead of Federal Reserve Chairman’s speech.
The domestic markets are likely to witness a flat opening.
Market Breadth * BSE NSE The prevailing technical negatives continued to weigh on
Advances 1060 457 the market sentiment leading to selling pressure. The
Declines 1720 1008 MACD has slipped below its average. Moreover, the RSI,
Same 150 94 KST and Stochastic are already placed below their
Total 2930 1559 respective averages, which would lead to further selling
A/D Ratio 0.61 : 1 0.45 : 1
pressure. However, a few prevailing technical positives
still hold good, which would lead to buying support at
Volume (Lacs Shares) * lower levels. The Stochastic has moved in the over sold
29/08/12 28/08/12 % Chg. zone on the daily charts. Moreover, the MACD and KST
BSE 1825 2170 -15.90
are still placed in the positive territory, which augurs well
for the markets. The Nifty remains placed above its 50-
NSE 5904 6510 -9.31
day SMA, 100-day SMA and 200-day SMA. More so the
Total 7729 8680 -10.96
Nifty’s 50-day SMA remains placed above Nifty’s 100-day
Turnover ( ` Crores) * SMA and 200-day SMA, the later being called the ‘Golden
29/08/12 28/08/12 % Chg.
Cross breakout’. These positive conditions would lead to
buying support and short covering at lower levels. The
BSE 1838.90 2335.85 -21.27
ADX line, +DI line and –DI line are moving sideways
NSE 9069.75 9500.81 -4.54
indicating a range bound trend. The market sentiment
NSE F&O 170841.35 173663.23 -1.62 remains cautious. Buying support remains absent. Now,
Total 181750.00 185499.89 -2.02 it is important that markets witness buying support at
regular intervals. The markets are likely to witness
F&O Contracts Traded (NSE) *
intermediate bouts of volatility and choppiness due to
29/08/12 28/08/12 % Chg.
impending derivative segment expiry. In the meanwhile
Index Fut. 535643 564218 -5.06 the markets would take cues from the Rupee, global
Stock Fut. 925968 1008221 -8.16 market cues and the crude prices. The support levels for
Index Opt. 4689365 4686532 0.06 Nifty are placed at 5250, 5215, 5118 and 5047. The Nifty
Stock Opt. 259006 267503 -3.18 faces resistance at the 5333, 5386, 5464, 5500, 5565 and
Total 6409982 6526474 -0.09 5607 levels.
NOTE - * - Source – BSE & NSE
Sanjay Bhatia (AVP – Technical Research), Email sanjay@keynotecapitals.net Yahoo Id: keytechnicals@yahoo.in
Keynote Capitals Ltd.
The Ruby, 9th Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

2. Jaldi 5
(Short Term Technical Ideas for 5 Trading Days)
Stop
Initiation Stop Loss Target
Stock Close Action Price Loss * (%) Target (%) Remarks
Allahabad Bank Fut 118.00 Sell Below 117.70 120.25 2.17 112 4.84
Ashok Leyland Fut 20.50 Sell Below 20.30 21.75 7.14 17 16.26
Bombay Dying Fut 442.60 Sell Below 442.00 452.00 2.26 420 4.98
DLF Fut 190.55 Sell Below 190.00 194.50 2.37 180 5.26
* 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 17491 17539 17606 17721 17904 17423 17356 17173
S&P CNX NIFTY 5288 5305 5328 5368 5431 5265 5243 5180
NIFTY AUG. FUT. 5297 5313 5334 5371 5428 5276 5256 5198
Stocks To Watch Out Today
BEL, BEML, Dabur, HUL, ITC, McLeod Russel, Oil India, United Spirits, Wipro
ABB, Allahabd Bk; Ashok Leyland, Axis Bk; Bajaj Auto, Bajaj Hind; Bajaj Holdings, BoI, BHEL, Bombay Dying, Canara Bank,
Crompton Greaves, Dish TV, Educomp, Escorts, Essar Oil, Godrej Inds; HDFC, HDFC Bank, HDIL, Hero Motocorp, Hindalco,
Indusind Bk; Jet Airways, Jindal Steel, JP Associate, JSW Steel, L&T, ONGC, Pantaloon Retail, PFC, PNB, PTC, Punj Lloyd,
Raymond, RCOM, REC, Rel. Cap; SAIL, Sesa Goa, SIntex, Sterlite, TTK Prestige, Union Bank, Vijaya Bank, Yes Bank, ZEEL
Keynote Capitals Ltd.
The Ruby, 9th Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

3. NOTE:
TECHNICAL ANALYSIS ABBREVATIONS
SMA – Simple Moving Average
EMA – Exponential Moving Average
WMA – Weighted Moving Average
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