1. Daily Technical Outlook
29th July 2011
Indices Close % Chg. Mirroring the weak set of global market cues, the domestic
BSE SENSEX 18209.52 -1.21 markets witnessed a gap down opening. Sustained selling
S&P CNX NIFTY 5487.75 -1.06 pressure was witnessed as markets traded lower. However,
NIFTY AUG. FUT. 5498.70 -1.06 short covering and selective buying support in the afternoon
India VIX 18.51 1.42
trade helped the markets bounce back from lower levels. The
markets see-sawed around the crucial 5500 level. The
S&P CNX NIFTY Technical Levels markets ended the day with modest losses to close near the
Level 1 Level 2 Level 3
lows for the day. The top losers for the day were PNB, HDFC
Bank, JP Associates, Reliance, Sterlite, NTPC, Hindalco,
Support 5364 5262 5195
SBI, HCL Tech., and IDFC.
Resistance 5500 5600 5710
Technically, the market breadth remained negative
Volume (Lacs Shares) amidst higher volumes. The global market set of cues are
28/07/11 27/07/11 % Chg. negative. The domestic markets are likely to witness a
BSE 2587 2307 12.14 gap down opening. The Stochastic, the MACD, the RSI
NSE 8427 5960 41.40 and the KST are placed below their respective signal and
Total 11014 8267 33.23 trigger line. Moreover, the KST is slipped in the negative
Source – BSE & NSE and the MACD remains placed in the negative territory.
All these conditions would result in selling pressure. The
Turnover ( ` Crores)
Nifty continues to trade below its 200-day SMA. The 50-
28/07/11 27/07/11 % Chg.
day SMA remains placed below the 100-day SMA. The
BSE 2810.40 2779.08 1.13 +DI, the ADX line and the -DI line continue to move in a
NSE 15018.22 11639.43 29.03 sideways pattern, indicating a range bound trend. The
NSE F&O 233519.13 189773.57 23.05 Stochastic is placed in the over sold territory and is the
Total 251347.75 204192.08 23.09 only silver lining for the markets. This would result in
Source – BSE & NSE regular bouts of short covering and buying support at
Market Breadth (NSE)
lower levels. The markets are placed crucially and the
market sentiment remains tentative. The Nifty has closed
Advances 373
below the crucial 5500 support level. Now, it is important
Declines 1089
that the Nifty moves above this level and witnesses
Same 52 follow up buying support at regular intervals for the
Total 1514 markets to move higher. Incase the Nifty fails to move
A/D Ratio 0.34 : 1 and close above the 5500 level, then increased selling
Source – NSE pressure is likely and the markets could drift lower. In the
Moving Averages S&P CNX NIFTY meanwhile the markets would take cues from the
50 Day SMA 5519.65
earnings season, news flow on the progress of monsoon,
◄Negative crude prices and the global markets. The support levels for
100 Day SMA 5581.61
Nifty are placed at 5364, 5262 and 5195. The Nifty faces
200 Day SMA 5706.78 ◄Negative
resistance at the 5500, 5600, 5710, 5885 and 5911 levels.
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 18210 18242 18295 18381 18520 18156 18103 17964
S&P CNX NIFTY 5488 5492 5508 5528 5565 5472 5455 5419
NIFTY AUG. FUT. 5499 5502 5522 5545 5589 5478 5458 5414
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
Ashok Leyland 50.80 Sell Below 50 52.25 4.5 45 10.00
Target of 416
Achieved given
Sell @ 444 on
BGR Energy 407.75 Sell Below 401 415.00 3.49 370 7.73 27/07/11
Bhushan Steel 398.60 Sell Below 395 411.00 4.05 360 8.86
Cummins 654.00 Sell Below 650 672.50 3.46 600 7.69
* Stop Losses are to be considered on Closing basis.
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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