The domestic stock markets in India opened firmly but then saw sharp falls due to the Supreme Court's cancellation of telecom licenses. The markets became volatile and choppy in the afternoon. They closed with moderate gains near the highs of the day. Key sectors like Bharti Airtel and technology performed well while market breadth remained positive with higher trading volumes. The report provides technical analysis indicators and support/resistance levels for the markets.

1. Keynote Capitals Ltd.
4
th
Floor, Balmer Lawrie Bldg., 5, J. N. Heredia Marg, Ballard Estate, Fort, Mumbai, India – 400001. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com
3rd
February 2012
Mirroring the positive global market cues, the domestic
markets witnessed a firm opening. However, Supreme
Court’s verdict canceling 2G licenses of telecom company
spoilt the market sentiment leading to a sharp fall on the
bourses. The markets turned volatile and choppy in the
afternoon session. The markets ended the day with moderate
gains to close near the highs for the day. The top gainers for
the day were Bharti Airtel, HCL Tech., ACC, Sesa Goa,
Ambuja Cements, DLF, Wipro, Ranbaxy, Sterlite and BPCL.
Technically, the market breadth remained positive amidst
higher volumes, which is a positive sign for the markets.
The global market set of cues are inconclusive. The
domestic markets are likely to witness a flat opening. The
Nifty continues sustain above its 200-day SM, which is a
positive sign for the markets. More over, the Nifty
remains placed above its 50-day SMA and 100-day SMA.
The MACD, RSI, KST and Stochastic are placed above
their respective averages, which would help in triggering
buying support. The KST and MACD are placed in the
positive territory. The ADX line, -DI line are moving
sideways. However, the +DI line is moving higher and is
placed at 38.37 indicating buyers are gaining strength.
However, a few technical negatives continue to prevail
and are likely to weigh on the market sentiment. The
Stochastic and RSI are placed in the over bought zone.
The 50-day SMA is also placed below the 100-day SMA.
All these conditions would lead to profit taking and
selling pressure, especially at higher levels. The markets
sentiment remains cautious as markets remain poised
crucially. Now, it is important that the markets witness
follow up buying support at regular intervals for the Nifty
to sustain above the 200-day SMA, which is its long term
moving average. Markets will witness intermediate bouts
of volatility and choppiness amidst thin trade ahead of
Chidambaram’s hearing on Saturday in relation to the 2G
scam. Intermediate bouts of profit taking and selling
pressure are likely to be witnessed. In the meanwhile the
markets would take cues from the earnings season, the
global markets and the crude prices. The support levels for
Nifty are placed at 5161, 5037, 4987, 4747 and 4563. The
Nifty faces resistance at the 5327, 5361 and 5400 levels.
Indices * Close % Chg.
BSE SENSEX 17431.85 0.76
S&P CNX NIFTY 5269.90 0.65
NIFTY FEB. FUT. 5274.35 0.23
India VIX 23.69 3.49
S&P CNX NIFTY Technical Levels
Level 1 Level 2 Level 3
Support 5161 5037 4987
Resistance 5327 3561 5400
Moving Averages S&P CNX NIFTY
50 Day SMA 4862.61
100 Day SMA 4953.21
◄Negative
200 Day SMA 5192.06 ◄Positive
Volume (Lacs Shares) *
02/02/12 01/02/12 % Chg.
BSE 3346 3290 1.70
NSE 11366 10317 10.16
Total 14712 13607 8.12
Turnover ( ` Crores) *
02/02/12 01/02/12 % Chg.
BSE 3679.07 4845.51 -24.07
NSE 18566.36 16815.16 10.41
NSE F&O 120750.68 96831.61 24.70
Total 142996.11 118492.28 20.68
F&O Contracts Traded (NSE) *
02/02/12 01/02/12 % Chg.
Index Fut. 575372 465944 23.49
Stock Fut. 771931 602951 28.03
Index Opt. 2983223 2441330 22.20
Stock Opt. 216416 171909 25.89
Total 4546942 3682134 15.93
Market Breadth (NSE) *
Advances 825
Declines 670
Same 69
Total 1564
A/D Ratio 1.23 : 1
NOTE - *- Source – BSE & NSE
Sanjay Bhatia (AVP – Technicals), Email Id sanjay@keynotecapitals.net Yahoo Chat Id: keytechnicals@yahoo.in
Daily Technical Outlook

2. Keynote Capitals Ltd.
4
th
Floor, Balmer Lawrie Bldg., 5, J. N. Heredia Marg, Ballard Estate, Fort, Mumbai, India – 400001. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com
Short Term Trading Ideas Based On Technical Analysis (5 - 7 Days)
Stock Close Action
Initiation
Price
Stop
Loss *
Stop
Loss
(%) Target
Target
(%) Remarks
ABB 860.30 Buy Above 865.00 842.50 2.60 915 5.78
TGT of 850
Achieved
given Buy @
805 on
27/01/12
ACC 1248.85 Buy Above 1255.00 1234.75 1.61 1300 3.59
TGT of 1230
Achieved
given Buy @
1146 on
25/01/12
Allahabad Bank 167.40 Buy Above 168.00 164.75 1.93 175 4.17
TGT of 170
Achieved
given Buy @
159 on
30/01/12
Century textiles 293.05 Buy Above 296.00 276.00 6.76 340 14.86
TGT of 286
Achieved
given Buy @
265 on
25/01/12
* Stop Losses are to be considered strictly on Closing basis.
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 17432 17415 17521 17611 17807 17325 17219 17023
S&P CNX NIFTY 5270 5262 5298 5326 5390 5234 5198 5133
NIFTY FEB. FUT. 5274 5269 5305 5336 5404 5238 5201 5134

3. Keynote Capitals Ltd.
4
th
Floor, Balmer Lawrie Bldg., 5, J. N. Heredia Marg, Ballard Estate, Fort, Mumbai, India – 400001. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com
Disclaimer
This document is not for public distribution and has been furnished to you solely for your information and must not be
reproduced or redistributed to any other person. Persons into whose possession this document may come are
required to observe these restrictions.
This material is for the personal information of the authorized recipient, and we are not soliciting any action based
upon it. This report is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any
jurisdiction where such an offer or solicitation would be illegal. It is for the general information of clients of Keynote
Capitals Ltd. It does not constitute a personal recommendation or take into account the particular investment
objectives, financial situations, or needs of individual clients.
We have reviewed the report, and in so far as it includes current or historical information, it is believed to be reliable
though its accuracy or completeness cannot be guaranteed. Neither Keynote Capitals Ltd., nor any person connected
with it, accepts any liability arising from the use of this document. The recipients of this material should rely on their
own investigations and take their own professional advice. Price and value of the investments referred to in this
material may go up or down. Past performance is not a guide for future performance. Certain transactions -including
those involving futures, options and other derivatives as well as non-investment grade securities - involve substantial
risk and are not suitable for all investors. Reports based on technical analysis centers on studying charts of a stock’s
price movement and trading volume, as opposed to focusing on a company’s fundamentals and as such, may not
match with a report on a company’s fundamentals.
Opinions expressed are our current opinions as of the date appearing on this material only. While we endeavor to
update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or
other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward-looking
statements are not predictions and may be subject to change without notice. Our proprietary trading and investment
businesses may make investment decisions that are inconsistent with the recommendations expressed herein.
We and our affiliates, officers, directors, and employees world wide may: (a) from time to time, have long or short
positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) be engaged in any other
transaction involving such securities and earn brokerage or other compensation or act as a market maker in the
financial instruments of the company (ies) discussed herein or act as advisor or lender / borrower to such company
(ies) or have other potential conflict of interest with respect to any recommendation and related information and
opinions.
The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal
views about the subject company or companies and its or their securities, and no part of his or her compensation
was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.
No part of this material may be duplicated in any form and/or redistributed without Keynote Capitals Ltd’s., prior
written consent.