The domestic stock markets witnessed modest losses and closed near the daily lows, with the Nifty slipping below 6000. Technically, market breadth was negative amid lower volumes, and negative indicators suggest further downside pressure. However, support levels also remain intact as the Nifty is above its short, medium and long term moving averages. The markets took cues from global trends and will continue watching earnings, the rupee and crude oil prices.

1. Daily Technical Outlook
4th February 2013
Indices * Close % Chg. Nifty slips below 6000
BSE SENSEX 19781.19 -0.57
S&P CNX NIFTY 5998.90 -0.59
Mirroring the inconclusive global market cues the domestic
markets witnessed a flat opening. The markets moved higher
NIFTY FEB 13 FUT. 6036.10 -0.51
in the morning trade. However, lack of follow up buying
India VIX 13.76 -2.61
support at higher levels saw the markets struggling to sustain
S&P CNX NIFTY Technical Levels higher. Selling pressure increased in the afternoon trade as
Level 1 Level 2 Level 3 markets showed no signs of resilience against selling
Support 5966 5885 5816
pressure. The markets ended the day with modest losses to
close near the lows for the day. The top losers for the day
Resistance 6158 6313 6358
were JP Associates, DLF, Bharti Airtel, Ambuja Cements,
Simple Moving Averages S&P CNX NIFTY Hindalco, ONGC, HUL, Ultratech Cemco, Siemens and ICICI
50 Day SMA 5933.44 ◄Positive Bank.
100 Day SMA 5787.75
Technically, the market breadth remained negative
200 Day SMA 5474.11
amidst lower volumes. The prevailing negative technical
Market Breadth * BSE NSE conditions continued to weigh on the market sentiment
Advances 969 467
and continue to hold good. The negative divergence
Declines 1179 617
pattern formed on the Nifty still holds good and remains
a sign of worry for the markets. The Stochastic, RSI, KST
Same 839 55
and MACD all are placed below their respective
Total 2987 1139
averages. These negative technical conditions would
A/D Ratio 0.82 : 1 0.76 : 1 lead to further selling pressure. However, the prevailing
Volume (Lacs Shares) * positive technical conditions also continue to hold good.
The Nifty remains placed above its 50-day SMA, 100-day
01/02/13 31/01/13 % Chg.
SMA and 200-day SMA. The Nifty’s 50-day SMA remains
BSE 2330 2433 -4.23
placed above Nifty’s 100-day SMA and 200-day SMA, the
NSE 7594 9999 -24.06 later being called the ‘Golden Cross breakout’. These
Total 9924 12432 -20.18 positive conditions would lead to buying support at
lower levels. The +DI line, -DI line and ADX line are
Turnover ( ` Crores) * moving sideways, indicating a range bound trend. The
01/02/13 31/01/13 % Chg. market sentiment is turning negative as Nifty has slipped
BSE 2387.03 2377.98 0.38 below psychologically important 6000 level. Now, it is
NSE 12014.88 16028.43 -25.04 important that the markets witness buying support for
NSE F&O 84995.64 227597.79 -62.66 the Nifty to move above the psychologically important
Total 99397.55 246004.20 -59.60 6000 level, other wise increased selling pressure is likely
to be witnessed and markets could test the 5816 support
F&O Contracts Traded (NSE) * level. In the meanwhile the markets would take cues from
01/02/13 31/01/13 % Chg. the ongoing earnings season, global markets, Rupee and
Index Fut. 198318 504179 -60.67 the crude prices. The support levels for Nifty are placed at
Stock Fut. 462214 1315076 -64.85 5966, 5885, 5816 and 5747. The Nifty faces resistance at
Index Opt. 1823007 4963179 -63.27
6158, 6313 and 6358 levels.
Stock Opt. 241836 538534 -55.09
Total 2725375 7320968 -46.95
NOTE - * - Source – BSE & NSE
Sanjay Bhatia (AVP – Technical Research), Email sanjay@keynotecapitals.net Yahoo Id: keytechnicals@yahoo.in
Keynote Capitals Ltd.
The Ruby, 9th Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

2. Jaldi 5 (Short Term Technical Ideas for 5 Trading Days)
Stop
Initiation Stop Loss Target
Stock Close Action Price Loss * (%) Target (%) Remarks
Allahabad Bank Fut 160.05 Sell Below 159 162.25 2.04 152 4.40
Andhra Bank Fut 111.90 Sell Below 112 114.25 2.47 107 4.04
Bharti Airtel Fut 330.75 Sell Below 330 334.50 1.36 320 3.03
* 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 19781 19828 19920 20058 20289 19690 19598 19368
S&P CNX NIFTY 5999 6012 6040 6081 6151 5970 5942 5872
NIFTY FEB 13 FUT. 6036 6030 6033 6030 6030 6033 6030 6030
Stocks To Watch Out Today
Asian Paints, Aurobindo Pharma, BPCL, Cipla, Coal India, Dish TV, Guj. Flourochemicals, IB Realestate, Indusind Bank, IOC,
ITC, Punj Lloyd, Renuka Sugar, Sun TV, Titan, Yes Bank, ZEEL
AB Nuvo, Allahabad Bank, Andhra Bank, Bharti Airtel, Colgate, DLF, FT, HDFC, HDFC Bank, Hexaware, Hindalco, ICICI Bank
Idea, Infosys Tech; Kotak Bank, KTKBank, L&T, McLeod Russel, ONGC, PTC, Tata Motors, Ultratech Cemco, Uniphos
Keynote Capitals Ltd.
The Ruby, 9th Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

3. NOTE:
TECHNICAL ANALYSIS ABBREVATIONS
SMA – Simple Moving Average
EMA – Exponential Moving Average
WMA – Weighted Moving Average
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