The domestic stock markets opened flat but remained volatile and range-bound. Selective buying in pivotal stocks provided some gains, though mid-cap stocks remained under pressure. The markets closed with modest gains near the day's lows. Technically, market breadth was negative with higher volumes, a bearish sign. The markets are likely to witness further choppiness and volatility taking cues from global markets and domestic news. Key support and resistance levels are provided.

1. Daily Technical Outlook
18th August 2011
Indices Close % Chg. Mirroring the mix set of global market cues, the domestic
BSE SENSEX 16840.80 0.66 markets witnessed a flat opening. The markets witnessed
S&P CNX NIFTY 5056.60 0.41 selective buying support in pivotal stocks leading to short
NIFTY AUG. FUT. 5066.75 0.77 covering and gains for the markets. The markets remained
India VIX 25.48 -3.70
range bound but volatile. Benchmark indices see-sawed
during the day amidst weak breadth. Buying remained
S&P CNX NIFTY Technical Levels concentrated in pivotals, while midcap stocks remained under
Level 1 Level 2 Level 3
pressure. The markets ended the day with modest gains to
close near the lows for the day. The top gainers for the day
Support 4987 4806 4757
were TCS, HDFC, HDFC Bank, Hero Motor Corp., Infosys
Resistance 5195 5262 5364
Tech., Sun Pharma, Sterlite, ONGC, HCL Tech. and ITC.
Volume (Lacs Shares) Technically, the market breadth remained negative
17/08/11 16/08/11 % Chg. amidst higher volumes, which is a negative sign for the
BSE 2909 2651 9.73 markets. The global market set of cues are mix. The
NSE 6691 6230 7.40 domestic markets are likely to witness a flat opening.
Total 9600 8881 8.10 The, Stochastic, MACD, RSI and KST are placed below
Source – BSE & NSE their respective averages. The Nifty continues to trade
below its 200-day SMA. Further the 50-day SMA remains
Turnover ( ` Crores)
placed below the 100-day SMA. The Nifty remains placed
17/08/11 16/08/11 % Chg.
below the February’11 ascending trendline. The -DI line
BSE 2369.48 2108.63 12.37 and the ADX line remains placed above the 30 level,
NSE 10428.86 9589.52 8.75 indicating sellers have an upper hand. The +DI line
NSE F&O 139602.40 114711.77 21.70 continues to move lower. Moreso, the KST and MACD are
Total 152400.74 126409.92 20.56 placed in the negative territory. These conditions would
Source – BSE & NSE result in selling pressure at regular intervals. However,
Market Breadth (NSE)
the MACD, RSI and KST are placed in the over sold
territory on the daily charts. These conditions would lead
Advances 388
to regular bouts of short covering and buying support
Declines 1074
leading to relief rally. The market sentiment remains
Same 54 negative. The markets will display intermediate bouts of
Total 1516 volatility and choppiness. In the meanwhile the markets
A/D Ratio 0.36 : 1 would take cues from the newsflow on Anna Hazare’s
Source – NSE campaign, global markets and news flow on the progress
Moving Averages S&P CNX NIFTY of monsoon. The support levels for Nifty are placed at 4987,
50 Day SMA 5455.12
4806 and 4757. The Nifty faces resistance at the 5195, 5262,
◄Negative 5364 and 5500 levels.
100 Day SMA 5551.35
200 Day SMA 5652.42 ◄Negative
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 16841 16850 16991 17141 17433 16700 16559 16267
S&P CNX NIFTY 5057 5062 5107 5157 5252 5012 4967 4872
NIFTY AUG. FUT. 5067 5069 5124 5181 5292 5012 4957 4845
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
Ashok Leyland 23.75 Sell Below 23.25 24.25 4.30 21.00 9.68
Axis Bank 1169.80 Sell Below 1165.00 1181.00 1.37 1130.00 3.00
CESC 300.00 Sell Below 297.00 302.50 1.85 285.00 4.04
DCB 46.50 Sell Below 46.00 48.25 4.89 41.00 10.87
TGT of 1950
Achieved
given @ 1860
Hero Honda 1936.00 Buy Above 1941.00 1896.00 2.32 2040.00 5.10 on 10/08/11
ITC 204.25 Buy Above 205.00 201.50 1.71 212.00 3.41
TCS 999.10 Buy Above 1010.00 980.00 2.97 1075.00 6.44
* 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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