The domestic stock markets witnessed declines, with the Nifty closing below the psychologically important 5000 level. Selling pressure remained as technical indicators like the Stochastic, MACD, RSI and KST fell below their averages. Support levels are at 4806, 4757 and 4481, while resistance is at 4987, 5195 and 5262. The markets are expected to be volatile and take cues from global markets and news on the progress of monsoon rains and Anna Hazare's campaign.

1. Daily Technical Outlook
19th August 2011
Indices Close % Chg. Mirroring the mix set of global market cues, the domestic
BSE SENSEX 16469.79 -2.20 markets witnessed a flat opening. However, the markets
S&P CNX NIFTY 4944.15 -2.22 drifted lower on back of sustained selling pressure. The
NIFTY AUG. FUT. 4938.05 -2.61 markets failed to show any resilience as buying support
India VIX 27.45 7.73
remained absent as Nifty traded below the psychologically
important 5000 level. The markets ended the day with
S&P CNX NIFTY Technical Levels moderate losses to close near the lows for the day. The top
Level 1 Level 2 Level 3
gainers for the day were Reliance infra, HCL Tech, Axis
Bank, ICICI Bank, Rel. Capital, IDFC, SBI, Wipro, TCS and
Support 4806 4757 4481
Sterlite.
Resistance 4987 5195 5262
Technically, the market breadth remained negative
Volume (Lacs Shares) amidst lower volumes, which is a negative sign for the
18/08/11 17/08/11 % Chg. markets. The global market set of cues are negative. The
BSE 2299 2909 -20.97 domestic markets are likely to witness a gap down
NSE 6332 6691 -5.37 opening. The Stochastic, MACD, RSI and KST are placed
Total 8631 9600 -10.10 below their respective averages. The Nifty continues to
Source – BSE & NSE trade below its 200-day SMA. Further the 50-day SMA
remains placed below the 100-day SMA. The Nifty
Turnover ( ` Crores)
remains placed below the February’11 ascending
18/08/11 17/08/11 % Chg.
trendline. The -DI line and the ADX line remains placed
BSE 2241.65 2369.48 -5.39 above the 34 level, indicating sellers have an upper hand.
NSE 10510.20 10428.86 0.78 The +DI line continues to move lower. Moreso, the KST
NSE F&O 151029.94 139602.40 8.19 and MACD are placed in the negative territory. These
Total 163781.79 152400.74 7.47 conditions would result in selling pressure at regular
Source – BSE & NSE intervals. However, the MACD, RSI, KST and Stochastic
Market Breadth (NSE)
are placed in the over sold territory on the daily charts.
This condition would lead to regular bouts of short
Advances 233
covering and buying support leading to relief rally. The
Declines 1238
market sentiment remains negative. The markets will
Same 41 display intermediate bouts of volatility and choppiness.
Total 1512 In the meanwhile the markets would take cues from the
A/D Ratio 0.19 : 1 newsflow on Anna Hazare’s campaign, global markets
Source – NSE and news flow on the progress of monsoon. The support
Moving Averages S&P CNX NIFTY levels for Nifty are placed at 4806, 4757 and 4481. The Nifty
50 Day SMA 5443.47
faces resistance at the 4987, 5195, 5262, 5364 and 5500
◄Negative levels.
100 Day SMA 5544.24
200 Day SMA 5646.55 ◄Negative
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 16470 16607 16780 17090 17574 16296 16123 15640
S&P CNX NIFTY 4944 4985 5038 5131 5278 4891 4839 4692
NIFTY AUG. FUT. 4938 4980 5034 5129 5279 4884 4831 4682
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
Target of 180
Achieved
given @ 187
Allahabad Bank 181.25 Sell Below 180.00 182.25 1.25 175.00 2.78 on 16/08/11
Target of
1130
Achieved
given @ 1165
Axis Bank 1109.25 Sell Below 1093.00 1117.00 2.20 1040.00 4.85 on 18/08/11
ICICI Bank 863.80 Sell Below 858.00 885.00 3.15 800.00 6.76
IDFC 107.25 Sell Below 106.00 109.60 3.40 98.00 7.55
Tech Mahindra 660.70 Sell Below 656.00 672.00 2.44 620.00 5.49
Target of 17
Achieved
given @ 19
TTML 17.05 Sell Below 16.80 17.70 5.36 14.80 11.90 on 16/08/11
* Stop Losses are to be considered on Closing basis only.
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

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