1. Daily Technical Outlook
19th October 2011
Indices Close % Chg. Mirroring the negative set of global market cues, the domestic
BSE SENSEX 16748.29 -1.63 markets witnessed a gap down opening. Sustained selling
S&P CNX NIFTY 5037.50 -1.58 pressure was witnessed as markets moved lower to test the
NIFTY OCT. FUT. 5044.90 -1.39 psychologically important 5000 level. However, markets
India VIX 25.90 1.84
managed to come off the lows of the day to move higher on
back of short covering and selective buying support. The
S&P CNX NIFTY Technical Levels markets ended the day with large losses to close near the
Level 1 Level 2 Level 3
highs for the day. The top losers for the day were HCL Tech.,
TCS, Hindalco, Sterlite, Tata Motors, Hindalco, Rel. Comm.,
Support 4987 4757 4563
Wipro, Bajaj Auto, ICICI Bank and Rel. Infra.
Resistance 5161 5230 5325
Technically, the market breadth remained negative
Volume (Lacs Shares) amidst lower volumes. The global market set of cues are
18/10/11 17/10/11 % Chg. mix. The domestic markets are likely to witness a
BSE 1791 1989 -9.95 positive opening. The prevailing technical negatives
NSE 4522 4807 -5.92 continue to still hold good and are weighing on the
Total 6313 6796 -7.10 markets negatively. The KST, RSI and Stochastic are
Source – BSE & NSE placed below their respective averages. The Nifty
continues to trade below its 200-day SMA. Further the 50-
Turnover ( ` Crores)
day SMA remains placed below the 100-day SMA. All
18/10/11 17/10/11 % Chg.
these conditions would lead to selling pressure. The
BSE 2200.43 2444.78 -9.99 only silver lining for the market remains the Nifty being
NSE 8811.61 9142.91 -3.62 placed above its 50-day SMA and the MACD, which has
NSE F&O 122386.39 107915.68 13.41 moved in the positive territory and is already placed
Total 133398.43 119503.37 11.63 above its average. This would lead to regular bouts of
Source – BSE & NSE short covering and selective buying support at lower
Market Breadth (NSE)
levels. The ADX, +DI line and –DI line are moving
sideways, indicating a range bound trend. The market
Advances 367
sentiment remains cautious. Now, it is important that the
Declines 1090
Nifty moves above the 5161 level for it to move higher.
Same 59 The 4987 is an important support level. The markets will
Total 1516 witness intermediate bouts of volatility ahead of the
A/D Ratio 0.34 : 1 derivative segment expiry next week. In the meanwhile
Source – NSE the markets would take cues from the global markets and
Moving Averages S&P CNX NIFTY the earnings season. The support levels for Nifty are placed
50 Day SMA 5004.81
at 4987, 4757, 4563, 4387 and 4291. The Nifty faces
◄Negative resistance at the 5161, 5230 and 5325 levels.
100 Day SMA 5264.67
200 Day SMA 5441.15 ◄Negative
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 16748 16747 16826 16903 17059 16670 16592 16436
S&P CNX NIFTY 5038 5035 5060 5082 5128 5013 4989 4942
NIFTY OCT. FUT. 5045 5041 5068 5091 5141 5018 4990 4940
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
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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
Areva 209.70 Sell Below 208 214.00 2.88 195 6.25
EKC 67.45 Sell Below 67 69.25 3.36 62 7.46
Cairn India 296.25 Buy Above 300 290.50 3.17 321 7.00
GMDC 176.15 Buy Above 179 172.00 3.91 194 8.38
* 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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