1. Daily Technical Outlook
6th July 2011
Indices Close % Chg. Mirroring the mix set of global market cues, the domestic
BSE SENSEX 18744.56 -0.37 markets witnessed a flat opening. Profit taking and selling
S&P CNX NIFTY 5632.10 -0.33 pressure continued on the bourses as the markets moved in
NIFTY JULY FUT. 5651.10 -0.26 a range bound trend. Selective buying support was witnessed
India VIX 18.25 0.44
at lower levels, especially in mid-cap stocks, while frontline
stocks took the beating. The markets ended the day with
S&P CNX NIFTY Technical Levels modest losses. The top losers for the day were BHEL, Cairn
Level 1 Level 2 Level 3
India, Reliance, Hindalco, IDFC, ITC, DLF, HUL, Gail and
Reliance Comm.
Support 5600 5500 5364
Resistance 5750 5885 5911 Technically, the market breadth remained neutral amidst
lower volumes. The global market set of cues are mix.
Volume (Lacs Shares) The domestic markets are likely to witness a flat opening.
05/07/11 04/07/11 % Chg. The Stochastic has come off the over bought zone on the
BSE 2474 3260 -24.11 daily charts. The positive divergence pattern continues
NSE 5770 5683 1.54 to hold good. The MACD, RSI and KST are comfortably
Total 8244 8943 -7.81 placed in the positive and above their respective
Source – BSE & NSE averages on the daily charts, which would lead to regular
bouts of buying support at lower levels The +DI line
Turnover ( ` Crores)
remains placed above the 30 level indicating buyers have
05/07/11 04/07/11 % Chg.
an upper hand but the ADX and the –DI line remain
BSE 2846.76 3004.05 -5.24 sideways. However, a few technical negatives continue
NSE 10752.34 9965.78 7.89 to hold good. The Stochastic remains placed below its
NSE F&O 61341.80 65447.26 -6.27 average on the daily charts, which would lead to regular
Total 74940.90 78417.09 -4.43 bouts of selling pressure. The 50-day SMA remains
Source – BSE & NSE placed below the 100-day SMA, which is a short-term
Market Breadth (NSE)
negative sign. The Nifty remains placed above the 5600
positive, which augurs well for the markets. In all
Advances 717
likelihood this would allow Nifty to test its 200-day SMA,
Declines 732
which is placed around the 5750 level. If the markets
Same 61 manage to move and sustain above it then the current
Total 1510 rally would get extended and Nifty could test 5900 levels.
A/D Ratio 0.98 : 1 In the meanwhile the markets would take cues from the
Source – NSE news flow on monsoon, forthcoming earnings season,
Moving Averages S&P CNX NIFTY crude prices and the global markets. The support levels for
50 Day SMA 5510.10
Nifty are placed at 5600, 5500, 5364, 5262 and 5175. The
◄Negative Nifty faces resistance at the 5750, 5885 and 5911 levels.
100 Day SMA 5553.69
200 Day SMA 5746.75 ◄Negative
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 18745 18759 18824 18903 19046 18680 18615 18471
S&P CNX NIFTY 5632 5635 5657 5682 5730 5610 5587 5540
NIFTY JULY FUT. 5651 5650 5671 5692 5733 5630 5608 5566
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 CMP Action Price Loss * (%) Target (%) Remarks
Bajaj Holdings 744.50 Buy Above 750 736 1.87 781 4.13
BEML 609.20 Buy Above 615 594 3.41 662 7.64
Grasim 2208.00 Buy Above 2220 2184 1.62 2300 3.60
Indusind Bank 287.00 Buy Above 290 281 3.10 310 6.90
M&M 722.00 Buy Above 727 709 2.48 767 5.50
* 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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