The domestic markets opened firmly but saw profit taking and selling pressure around the 5700 level. The markets ended the day with modest gains near the highs, despite remaining range bound and lackluster with tepid volume. Technically, market breadth remained robust amid lower volumes while indicators like MACD and RSI remained in positive territory on daily charts. The markets are likely to witness a flat opening and the Nifty faces resistance at 5750 and support at 5600.

1. Daily Technical Outlook
5th July 2011
Indices Close % Chg. Mirroring the positive set of global market cues, the domestic
BSE SENSEX 18814.48 0.28 markets witnessed a firm opening. The markets moved higher
S&P CNX NIFTY 5650.50 0.41 but faltered around the 5700 level on back of profit taking and
NIFTY JULY FUT. 5665.85 0.48 selling pressure. Buying support was witnessed at lower
India VIX 18.17 -0.21
levels. However, the market trend remained range bound and
lackluster as volume remained tepid. The markets remained
S&P CNX NIFTY Technical Levels range bound for the rest of the day. The markets ended the
Level 1 Level 2 Level 3
day with modest gains to close near the highs for the day.
The top gainers for the day were DLF, Rel. Infra, Kotak bank,
Support 5600 5500 5364
PNB, IDFC, GAIL, Axis Bank, Rel. Capital and Dr. Reddys.
Resistance 5750 5885 5911
Technically, the market breadth remained robust amidst
Volume (Lacs Shares) lower volumes. The global market set of cues are mix.
04/07/11 01/07/11 % Chg. The domestic markets are likely to witness a flat opening.
BSE 3260 2767 17.82 The Nifty remains placed above the 5600 positive, which
NSE 5683 6356 -10.59 augurs well for the markets. The positive divergence
Total 8943 9123 -1.98 pattern continues to hold good and is providing the
Source – BSE & NSE necessary impetus for the currently rally. The MACD, RSI
and KST are comfortably placed in the positive and
Turnover ( ` Crores)
above their respective averages on the daily charts,
04/07/11 01/07/11 % Chg.
which would lead to regular bouts of buying support. The
BSE 3004.05 2756.53 8.98 +DI line remains placed above the 30 level indicating
NSE 9965.78 11133.06 -10.48 buyers have an upper hand but the ADX and the –DI line
NSE F&O 65447.26 74840.87 -12.55 remain sideways. However, a few technical negatives
Total 78417.09 88730.46 -11.62 continue to hold good. The Stochastic has breached its
Source – BSE & NSE average and is placed in the over bought zone on the
Market Breadth (NSE)
daily charts, which would lead to regular bouts of profit
taking and selling pressure. The 50-day SMA remains
Advances 972
placed below the 100-day SMA, which is a short-term
Declines 473
negative sign. In all likelihood the Nifty is likely to test its
Same 67 200-day SMA, which is placed around the 5750 level. If
Total 1512 the markets manage to move and sustain above it then
A/D Ratio 2.05 : 1 the current rally would get extended and Nifty could test
Source – NSE 5900 levels. In the meanwhile the markets would take
Moving Averages S&P CNX NIFTY cues from the news flow on monsoon, crude prices and
50 Day SMA 5514.82
the global markets. The support levels for Nifty are placed at
◄Negative 5600, 5500, 5364, 5262 and 5175. The Nifty faces resistance
100 Day SMA 5549.91
at the 5750, 5885 and 5911 levels.
200 Day SMA 5748.02 ◄Negative
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 18814 18846 18911 19007 19167 18750 18686 18525
S&P CNX NIFTY 5651 5654 5676 5701 5748 5629 5608 5561
NIFTY JULY FUT. 5666 5666 5690 5714 5761 5642 5618 5571
Sanjay Bhatia (AVP – Technicals), Email Id sanjay@keynotecapitals.net Yahoo Chat Id: keytechnicals@yahoo.in
Keynote Capitals Ltd.
th
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 CMP Action Price Loss * (%) Target (%) Remarks
APIL 537.85 Buy Above 546 532 2.56 577 5.68
Bajaj Hind. 74.30 Buy Above 76 71 6.58 85 11.84
Educomp 406.95 Buy Above 411 393 4.38 450 9.49
* Stop Losses are to be considered on Closing basis.
Keynote Capitals Ltd.
th
4 Floor, Balmer Lawrie Bldg., 5, J. N. Heredia Marg, Ballard Estate, Fort, Mumbai, India – 400001. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

3. 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
4 Floor, Balmer Lawrie Bldg., 5, J. N. Heredia Marg, Ballard Estate, Fort, Mumbai, India – 400001. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com