- The Indian markets opened higher but failed to sustain gains and closed lower due to profit taking following the arrest of Anna Hazare. Trading volumes remained low. - Technically, market breadth was negative with declines outnumbering advances. Most technical indicators are signaling that sellers have the upper hand, suggesting further downside potential. - Support levels for Nifty are at 4987, 4806 and 4757. Resistance is at 5195, 5262 and 5364. The markets may see intermittent volatility and take cues from domestic and global news.

1. Daily Technical Outlook
17th August 2011
Indices Close % Chg. Mirroring the positive set of global market cues, the domestic
BSE SENSEX 16730.94 -0.65 markets witnessed a gap up opening. However, the markets
S&P CNX NIFTY 5035.80 -0.73 failed to capitalize on morning gains. Profit taking was
NIFTY AUG. FUT. 5027.70 -1.04 witnessed on news of arrest of Anna Hazare and his
India VIX 26.46 -2.07
supporters in New Delhi. The volume recorded remained low.
The markets continued to drift lower to trade in the negative
S&P CNX NIFTY Technical Levels on back of selling pressure. The markets ended the day with
Level 1 Level 2 Level 3
moderate losses to close near the lows for the day. The top
losers for the day were Rel. Comm., JP Associates, Rel.
Support 4987 4806 4757
Capital, SAIL, DLF, Rel. Infra, IDFC, Sesa Goa, Rel. Power
Resistance 5195 5262 5364
and Hindalco.
Volume (Lacs Shares) Technically, the market breadth remained negative
16/08/11 12/08/11 % Chg. amidst lower volumes. The global market set of cues are
BSE 2651 3183 -16.71 mix. The domestic markets are likely to witness a flat
NSE 6230 6635 -6.11 opening. The Nifty continues to trade below its 200-day
Total 8881 9818 -9.55 SMA. Further the 50-day SMA remains placed below the
Source – BSE & NSE 100-day SMA. The Nifty remains placed below the
February’11 ascending trendline. The -DI line remains
Turnover ( ` Crores)
placed above the 38 level along with the ADX line which
16/08/11 12/08/11 % Chg.
has moved above the 30 level, indicating sellers have an
BSE 2108.63 2691.01 -21.64 upper hand. The +DI line continues to move down. The,
NSE 9589.52 11260.26 -14.84 MACD, RSI and KST are placed below their respective
NSE F&O 114711.77 123773.58 -7.32 averages. Moreso, the KST and MACD are placed in the
Total 126409.92 137724.85 -8.22 negative territory. These conditions would result in
Source – BSE & NSE selling pressure at regular intervals. However, a few
Market Breadth (NSE)
positive formations are taking place and would help
markets move higher. The MACD, RSI and KST are
Advances 327
placed in the over sold territory on the daily charts. The
Declines 1143
Stochastic is placed above its average. These conditions
Same 31 would lead to regular bouts of short covering and buying
Total 1501 support leading to relief rally. The market sentiment
A/D Ratio 0.29 : 1 remains negative. The markets will display intermediate
Source – NSE bouts of volatility. In the meanwhile the markets would
Moving Averages S&P CNX NIFTY take cues from the newsflow on Anna Hazare’s
50 Day SMA 5465.11
campaign, global markets, news flow on the progress of
◄Negative monsoon and crude prices. The support levels for Nifty are
100 Day SMA 5556.00
placed at 4987, 4806 and 4757. The Nifty faces resistance at
200 Day SMA 5657.22 ◄Negative
the 5195, 5262, 5364 and 5500 levels.
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 16731 16813 16953 17175 17537 16591 16451 16089
S&P CNX NIFTY 5036 5061 5107 5178 5295 4990 4944 4828
NIFTY AUG. FUT. 5028 5058 5110 5191 5325 4976 4925 4791
Sanjay Bhatia (AVP – Technicals), Email Id sanjay@keynotecapitals.net Yahoo Chat Id: keytechnicals@yahoo.in
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

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 529.80 Sell Below 526 541.30 2.91 492 6.46
Apollo Tyre 56.30 Sell Below 55 57.25 4.09 50 9.09
Bajaj Hind 53.85 Sell Below 53 55.75 5.19 47 11.32
Target of 92
Achieved
given @ 100
Essar Oil 91.25 Sell Below 90 92.25 2.50 85 5.56 on 08/08/11
Target of 710
Achieved
given @ 685
Bata 699.35 Buy Above 711 704.70 0.89 725 1.97 on 12/08/11
* 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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www.keynotecapitals.com