The domestic markets witnessed a flat opening but moved higher later in the day due to selective buying. However, weak Asian market cues caused the markets to erase gains and end the day with moderate losses. Technically, market breadth was negative with lower trading volumes. The markets are expected to have a gap up opening but display volatility due to derivative expiry. Key support and resistance levels for the Nifty are provided.

1. Daily Technical Outlook
25th August 2011
Indices Close % Chg. Mirroring the mix set of global market cues, the domestic
BSE SENSEX 16284.98 -1.29 markets witnessed a flat opening. The markets soon moved
S&P CNX NIFTY 4888.90 -1.21 higher on back of selective buying support and short
NIFTY SEP. FUT. 4891.80 -1.14 covering. However, weak Asian market cues and lack of
India VIX 28.60 10.33
follow up buying support saw the markets erase all the gains
to trade in the negative. 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
losers for the day were Tata Power, Tata Steel, SBI, IDFC,
HCL Tech., Tata Motors, Maruti, Jindal Steel, and Bajaj Auto.
Support 4806 4757 4481
Resistance 4987 5195 5262 Technically, the market breadth remained negative
amidst lower volumes. The global market set of cues are
Volume (Lacs Shares) largely positive. The domestic markets are likely to
24/08/11 23/08/11 % Chg. witness a gap up opening. The Nifty failed to sustain
BSE 2224 2773 -19.80 above the 5900 level mark, even though it had moved
NSE 5583 5480 1.87 above this level. It continues to trade below its 200-day
Total 7807 8253 -5.41 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 MACD and KST are
Turnover ( ` Crores)
placed below their respective averages. The -DI line has
24/08/11 23/08/11 % Chg.
started to fall indicating short covering but it along with
BSE 2204.92 2247.03 -1.87 the ADX line are placed above the 35 level, indicating
NSE 9631.87 10149.10 -5.10 sellers still have an upper hand. The +DI line is flattening
NSE F&O 179528.54 170266.39 5.44 out. Moreso, the KST and MACD are placed in the
Total 191365.33 182662.52 4.76 negative territory. These conditions would result in
Source – BSE & NSE selling pressure at regular intervals. However, the
Market Breadth (NSE)
MACD, RSI, KST and Stochastic are placed in the over
sold territory on the daily charts. Moreso, the Stochastic
Advances 616
and RSI are placed above its average. These conditions
Declines 844
would lead to regular bouts of short covering and buying
Same 55 support leading to relief rally. The market sentiment
Total 1515 remains tentative. The markets will display intermediate
A/D Ratio 0.73 : 1 bouts of volatility and choppiness due to the derivative
Source – NSE segment expiry. In the meanwhile the markets would take
Moving Averages S&P CNX NIFTY cues from the global markets, crude prices, newsflow on
50 Day SMA 5395.31
Anna Hazare’s campaign and the progress of monsoon.
◄Negative The support levels for Nifty are placed at 4806, 4757 and
100 Day SMA 5509.62
4481. The Nifty faces resistance at the 4987, 5195, 5262,
200 Day SMA 5620.09 ◄Negative
5364 and 5500 levels.
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 16285 16357 16461 16637 16916 16181 16078 15798
S&P CNX NIFTY 4889 4909 4942 4996 5083 4855 4822 4735
NIFTY SEP. FUT. 4892 4911 4949 5005 5100 4854 4817 4722
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
DCHL 64.35 Sell Below 63.00 65.25 3.57 58.00 7.94
Dish TV 77.55 Sell Below 76.00 78.25 2.96 71.00 6.58
Bata 723.15 Buy Above 725.00 713.50 1.59 750.00 3.45
BGR Energy 329.40 Buy Above 335.00 326.00 2.69 355.00 5.97
* 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
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