The domestic stock markets opened flat and remained range-bound ahead of inflation data. Trading was muted with modest gains, though the indices closed near the day's highs. Technical indicators remain positive overall, but some signals like high stochastic readings point to potential profit taking. The markets may see occasional bouts of selling pressure at higher levels. Support levels are at 4987, 4757 and 4563, while resistance is at 5161, 5200 and 5325.

1. Daily Technical Outlook
9th September 2011
Indices Close % Chg. Mirroring the mix set of Asian market cues, the domestic
BSE SENSEX 17165.54 0.59 markets witnessed a flat opening. The overall trend remained
S&P CNX NIFTY 5153.25 0.56 range bound ahead of the inflation data. The markets moved
NIFTY SEP. FUT. 5155.00 0.73 in a narrow range. Buying picked up in the afternoon session
India VIX 27.64 -0.78
as Nifty moved above the 5150 level. However, lack of follow
up buying support and profit taking at higher levels did not
S&P CNX NIFTY Technical Levels allow the markets to capitalize on gains. The markets ended
Level 1 Level 2 Level 3
the day with modest gains to close near the highs for the day.
The top gainers for the day were Cairn, Ranbaxy, ICICI Bank,
Support 4987 4757 4563
Cipla, Reliance, Tata Motors, Wipro, HUL, Infosys Tech. and
Resistance 5161 5200 5325
Rel. Infra.
Volume (Lacs Shares) Technically, the market breadth remained positive amidst
08/09/11 07/09/11 % Chg. lower volumes. The global market set of cues are mix.
BSE 2912 2490 16.95 The domestic markets are likely to witness a flat opening.
NSE 6511 7483 -12.99 As we had indicated the Nifty tested the 5150 level and
Total 9423 9973 -5.52 was able to sustain above it, which is a positive sign for
Source – BSE & NSE the markets. The Stochastic, MACD, RSI and KST are
placed above their respective averages, which would
Turnover ( ` Crores)
lead to further buying support. The –DI line continues to
08/09/11 07/09/11 % Chg.
move down, while the +DI line continues to move higher,
BSE 2699.05 2757.35 -2.11 indicating sellers have lost their upper hand. However, a
NSE 11358.75 12753.73 -10.94 few technical negatives continue to hold good and would
NSE F&O 90346.12 95862.67 -5.75 lead to intermediate bouts of profit taking and selling
Total 104403.92 111373.75 -6.26 pressure at higher levels. The Stochastic is placed in the
Source – BSE & NSE over bought zone on the daily charts. The KST and
Market Breadth (NSE)
MACD are placed in the negative territory. The Nifty
continues to trade below its 200-day SMA. Further the 50-
Advances 894
day SMA remains placed below the 100-day SMA. Now, it
Declines 567
is important that the markets witness follow up buying
Same 61 support at higher levels for the Nifty to test the 5200
Total 1522 resistance level. The markets will witness occasional
A/D Ratio 1.58 : 1 bouts of profit taking and selling pressure at higher
Source – NSE levels. In the meanwhile the markets would take cues
Moving Averages S&P CNX NIFTY from the global markets. The support levels for Nifty are
50 Day SMA 5326.65
placed at 4987, 4757 and 4563. The Nifty faces resistance at
◄Negative the 5161, 5200 and 5325 levels.
100 Day SMA 5430.83
200 Day SMA 5569.05 ◄Negative
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 17166 17121 17254 17343 17565 17032 16899 16676
S&P CNX NIFTY 5153 5140 5182 5211 5282 5111 5069 4998
NIFTY SEP. FUT. 5155 5139 5190 5225 5310 5104 5053 4968
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
APIL 562.85 Buy Above 567 552 2.65 600 5.82
Cairn 287.35 Buy Above 290 279 3.79 314 8.28
L&T 1711.25 Buy Above 1723 1690 1.92 1795 4.18
* Stop Losses are to be considered on Closing basis only.
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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