1. Daily Technical Outlook
8th July 2011
Indices Close % Chg. Mirroring the mix set of global market cues, the domestic
BSE SENSEX 19078.30 1.88 markets witnessed a flat opening. However, sustained buying
S&P CNX NIFTY 5728.95 1.84 support, which led to short covering, helped the markets
NIFTY JULY FUT. 5744.60 1.88 move higher. The markets showed no signs of weakness
India VIX 18.62 1.52
though profit taking and selling pressure was witnessed at
higher levels. The markets ended the day with handsome
S&P CNX NIFTY Technical Levels gains to close near the highs for the day. Nifty closed above
Level 1 Level 2 Level 3
the 5700 level. The top gainers for the day were Bharti Airtel,
ITC, Hindalco, L&T, ACC, Jindal Steel, Rel. Infra, Dr. Reddys,
Support 5600 5500 5364
Cairn India and NTPC.
Resistance 5750 5885 5911
Technically, the market breadth remained robust amidst
Volume (Lacs Shares) higher volumes, which is a positive sign for the markets.
07/07/11 06/07/11 % Chg. The global market set of cues are largely positive. The
BSE 4411 2559 72.37 domestic markets are likely to witness a positive
NSE 6127 5486 11.68 opening. The Nifty continued its uptrend inching closer
Total 10538 8045 30.99 to test its 200-day SMA. The Nifty has moved above its
Source – BSE & NSE November 2010 descending trendline, which augurs well
for the markets. The MACD, RSI and KST are comfortably
Turnover ( ` Crores)
placed in the positive and above their respective
07/07/11 06/07/11 % Chg.
averages on the daily charts, which would lead to regular
BSE 3493.58 2674.27 30.64 bouts of buying support. The +DI line has once again
NSE 12023.56 9881.31 21.68 started to move higher and remains placed above the 30
NSE F&O 102607.02 63448.67 61.72 level indicating buyers have an upper hand. The ADX and
Total 118124.16 76004.25 55.42 the –DI line remain sideways. However, a few technical
Source – BSE & NSE negatives continue to hold good. The Stochastic remains
Market Breadth (NSE)
placed below its average on the daily charts, which
would lead to regular bouts of selling pressure. The 50-
Advances 1010
day SMA remains placed below the 100-day SMA. As we
Declines 424
have been indicating the Nifty is likely to test its 200-day
Same 79 SMA, which is placed around the 5743 level. If the Nifty
Total 1513 manage to move and sustain above it then the current
A/D Ratio 2.38 : 1 rally would get extended and Nifty could test 5900 levels.
Source – NSE In the meanwhile the markets would take cues from the
Moving Averages S&P CNX NIFTY news flow on monsoon, forthcoming earnings season,
50 Day SMA 5504.80
crude prices and the global markets. The support levels for
◄Negative Nifty are placed at 5600, 5500, 5364, 5262 and 5175. The
100 Day SMA 5561.88
Nifty faces resistance at the 5750, 5885 and 5911 levels.
200 Day SMA 5743.58 ◄Negative
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 19078 18981 19195 19312 19642 18864 18651 18320
S&P CNX NIFTY 5729 5700 5766 5804 5908 5662 5595 5491
NIFTY JULY FUT. 5745 5712 5784 5823 5934 5673 5602 5491
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 CMP Action Price Loss * (%) Target (%) Remarks
Allahabad Bank 205.95 Buy Above 207 202.50 2.17 217 4.83
Bajaj Auto 1455.95 Buy Above 1465 1423.00 2.87 1558 6.35
Bharti Airtel 398.00 Buy Above 405 394.50 2.59 428 5.68
CESC 318.75 Buy Above 320 311.00 2.81 340 6.25
L&T 1863.45 Buy Above 1870 1811.00 3.16 2001 7.01
* 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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