The domestic markets opened lower but recovered losses and closed flat with marginal losses. The markets remained volatile and ranged bound as profit taking pressure was seen at higher levels while buying support emerged at lower levels. Technically, indicators are signaling further downside while market breadth was negative on lower volumes. The markets are expected to open higher but could face selling pressure if the Nifty fails to close above the 5500 resistance level. Support and resistance levels are provided.

1. Daily Technical Outlook
1st August 2011
Indices Close % Chg. Mirroring the weak set of global market cues, the domestic
BSE SENSEX 18197.20 -0.07 markets witnessed a gap down opening. However, the
S&P CNX NIFTY 5482.00 -0.10 markets managed to move higher erasing the losses on back
NIFTY AUG. FUT. 5488.05 -0.19 of short covering and buying support. The markets remained
India VIX 19.77 6.80
range bound but volatile. Profit taking and selling pressure
was visible at higher levels, while short covering and buying
S&P CNX NIFTY Technical Levels support was visible at lower levels. The markets see-sawed
Level 1 Level 2 Level 3
around the crucial 5500 level. The markets ended the day flat
with marginal losses to close near the lows for the day. The
Support 5364 5262 5195
top losers for the day were Sesa Goa, Jindal Steel, JP
Resistance 5500 5600 5710
Associates, ONGC, Ambuja Cements, IDFC, Kotak Bank,
Sterlite, Hero Honda and Ranbaxy.
Volume (Lacs Shares)
29/07/11 28/07/11 % Chg. Technically, the market breadth remained negative
BSE 2541 2587 -1.78 amidst lower volumes. The global market set of cues are
NSE 6786 8427 -19.47 largely positive. The domestic markets are likely to
Total 9327 11014 -15.32 witness a gap up opening. The Stochastic, MACD, RSI
Source – BSE & NSE and KST are placed below their respective signal and
trigger line. Moreover, the KST and MACD are placed in
Turnover ( ` Crores)
the negative territory. All these conditions would result in
29/07/11 28/07/11 % Chg.
selling pressure. The Nifty continues to trade below its
BSE 2968.26 2810.40 5.62 200-day SMA. The 50-day SMA remains placed below the
NSE 12459.14 15018.22 -17.04 100-day SMA. The +DI, the ADX line and the -DI line
NSE F&O 99820.86 233519.13 -57.25 continue to move in a sideways pattern, indicating a
Total 115248.26 251347.75 -54.15 range bound trend. The Stochastic is placed in the over
Source – BSE & NSE sold territory on the daily charts and is the only silver
Market Breadth (NSE)
lining for the markets. This would result in regular bouts
of short covering and buying support at lower levels. The
Advances 498
markets remain placed crucially, while the market
Declines 941
sentiment remains tentative. Now, it is important that the
Same 75 Nifty witnesses buying support and moves above the
Total 1514 5500 level. Incase the Nifty fails to move and close above
A/D Ratio 0.53 : 1 the 5500 level, then the markets could drift lower. In the
Source – NSE meanwhile the markets would take cues from the
Moving Averages S&P CNX NIFTY earnings season, news flow on the progress of monsoon,
50 Day SMA 5519.57
crude prices and the global markets. The support levels for
◄Negative Nifty are placed at 5364, 5262 and 5195. The Nifty faces
100 Day SMA 5581.22
resistance at the 5500, 5600, 5710, 5885 and 5911 levels.
200 Day SMA 5703.02 ◄Negative
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 18197 18221 18310 18424 18626 18108 18019 17816
S&P CNX NIFTY 5482 5485 5517 5552 5618 5451 5419 5353
NIFTY AUG. FUT. 5488 5492 5528 5567 5643 5452 5417 5341
Sanjay Bhatia (AVP – Technicals), Email Id sanjay@keynotecapitals.net Yahoo Chat Id: keytechnicals@yahoo.in
Keynote Capitals Ltd.
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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 1337.50 Buy Above 1342.00 1307.00 2.61 1420 5.81
Bajaj Auto 1469.60 Buy Above 1475.00 1441.00 2.31 1550 5.08
Bharti Airtel 437.25 Buy Above 440.00 420.00 4.55 485 10.23
* Stop Losses are to be considered on Closing basis.
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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