The domestic stock markets opened higher but saw selling pressure as the day progressed. The markets struggled to maintain direction and ended flat, close to the day's lows. Technically, market breadth was negative with higher volumes in midcap and small cap stocks. Asian market cues were negative and the domestic markets are likely to see a gap down opening. Key support and resistance levels for the Nifty are noted.

1. Daily Technical Outlook
19th September 2011
Indices Close % Chg. Mirroring the positive set of global market cues, the domestic
BSE SENSEX 16933.83 0.34 markets witnessed a firm opening. However, selling pressure
S&P CNX NIFTY 5084.25 0.17 was witnessed at higher levels ahead of RBI’s review of
NIFTY SEP. FUT. 5087.60 0.13 monetary policy. The markets struggled to find a secular
India VIX 28.45 -7.59
direction during the day. The overall trend remained range
bound and The markets ended the day flat to close near the
S&P CNX NIFTY Technical Levels lows for the day. The top losers for the day were Ambuja
Level 1 Level 2 Level 3
Cement, HCL Tech, Rel. Comm., Wipro, Rel. Capital, SAIL,
HUL, ACC, BPCL and BHEL. The top losers for the day were
Support 4987 4757 4563
Tata Motors, ONGC, NTPC, Sterlite, Powergrid, SBI, Tata
Resistance 5161 5200 5325
Power, Maruti, Dr. Reddys and Ranbaxy.
Volume (Lacs Shares) Technically, the market breadth remained negative
16/09/11 15/09/11 % Chg. amidst higher volumes, indicating higher participation in
BSE 2637 2424 8.79 midcap and small cap stocks. The Asian market set of
NSE 8009 5705 40.39 cues are negative. The domestic markets are likely to
Total 10646 8129 30.96 witness a gap down opening. The Nifty inched closer to
Source – BSE & NSE test the 5161 resistance level. Now it is important that the
markets witness follow up buying support at regular
Turnover ( ` Crores)
intervals for the uptrend to continue. The Stochastic, RSI,
16/09/11 15/09/11 % Chg.
KST and MACD are placed above their respective
BSE 2786.52 2570.88 8.39 averages. Moreso the KST and MACD are placed in the
NSE 14282.95 10582.59 34.97 positive territory. This would fuel buying support on the
NSE F&O 150215.92 131568.09 14.17 bourses. However, the prevailing negatives continue to
Total 167285.39 144721.56 15.59 hold good and would cap the upside gains The Nifty
Source – BSE & NSE continues to trade below its 200-day SMA. Further the 50-
Market Breadth (NSE)
day SMA remains placed below the 100-day SMA. The
market sentiment remains cautious as markets crucially
Advances 648
poised. The ADX, +DI line and –DI line are moving
Declines 813
sideways indicating a range bound trend for the markets.
Same 66 In the meanwhile the markets would take cues from the
Total 1527 global markets and crude prices. The support levels for
A/D Ratio 0.80 : 1 Nifty are placed at 4987, 4757, 4563 and 4387. The Nifty
Source – NSE faces resistance at the 5161, 5200 and 5325 levels.
Moving Averages S&P CNX NIFTY
50 Day SMA 5254.98
◄Negative
100 Day SMA 5382.54
200 Day SMA 5543.69 ◄Negative
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 16934 16982 17074 17215 17448 16841 16749 16516
S&P CNX NIFTY 5084 5099 5129 5174 5250 5054 5023 4948
NIFTY SEP. FUT. 5088 5105 5138 5189 5273 5054 5021 4937
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
ABB 832.90 Sell Below 827.00 851.00 2.90 775.00 6.29
Dr. Reddys 1527.10 Buy Above 1535.00 1505.00 1.95 1600.00 4.23
PFC 161.20 Buy Above 162.75 159.50 2.00 170.00 4.45
* 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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