The domestic stock markets opened firmly but struggled to sustain gains. The markets witnessed some profit taking but recovered to end the day with small gains. Technically, indicators are mostly positive but follow through buying is lacking. The markets may see volatility as the Nifty struggles to stay above 5,300. Support and resistance levels for the Nifty are provided.

1. Daily Technical Outlook
4th July 2012
Indices * Close % Chg.
BSE SENSEX 17425.71 0.15
Markets over bought but positive
S&P CNX NIFTY 5287.95 0.18
Mirroring the positive global market cues the domestic
NIFTY JULY FUT. 5305.75 0.19
markets witnessed a firm opening. However, the Nifty
India VIX 18.56 -2.36 continued to struggle above the 5300 level as follow up
S&P CNX NIFTY Technical Levels buying support remained absent. Profit taking and selling
pressure was witnessed which dragged the markets lower.
Level 1 Level 2 Level 3
However, the markets managed a bounce back in the
Support 5250 5114 5080
afternoon trade and moved above the 5300 level. The
Resistance 5333 5379 5500 markets ended the day with marginal gains to close near the
Moving Averages S&P CNX NIFTY gains for the day. The top gainers for the day were DLF,
50 Day SMA 5048.83
Bharti Airtel, Hindalco, PNB, Gail, Sesa Goa, HDFC, BPCL,
ONGC and Coal India.
100 Day SMA 5189.17
200 Day SMA 5080.07 ◄Critical Technically, the market breadth remained positive amidst
higher volumes, which is a positive sign for the markets.
Market Breadth * BSE NSE
The global market cues are positive. The domestic
Advances 1728 913
markets are likely to witness a firm opening. The
Declines 1139 582 prevailing technical positives continue to hold good but
Same 98 62 follow up buying support remains elusive. The
Total 2965 1557 Stochastic, MACD, RSI and KST all are placed above
A/D Ratio 1.52 : 1 1.57 : 1 their respective averages. The MACD and KST are also
placed in the positive territory, which augurs well for the
Volume (Lacs Shares) * markets. The Nifty remains placed above the 50-day
03/07/12 02/07/12 % Chg. SMA, 100-day SMA and 200-day SMA. The +DI continues
BSE 2845 2845 0.00 to move higher along with the ADX line and –DI line is
NSE 7509 7003 7.23 moving sideways indicating buyers are gaining strength.
Total 10354 9848 5.14 These positive conditions would lead to further buying
support. However, a few technical negatives hold good
Turnover ( ` Crores) * and would weigh on the market sentiment. The
03/07/12 02/07/12 % Chg. Stochastic has moved in the over bought zone on the
BSE 3948.92 3948.92 0.00 daily charts, while the Nifty’s 50-day SMA remains placed
NSE 10363.91 9738.67 6.42
below its 100-day SMA and 200-day SMA. These negative
conditions would result in regular bouts of profit taking.
NSE F&O 84622.66 78102.60 8.35
The market sentiment remains positive but tentative. It is
Total 98935.49 91790.19 7.78
now important that the markets witness follow up buying
F&O Contracts Traded (NSE) * support at higher levels, which so far remains elusive.
03/07/12 02/07/12 % Chg.
Intermediate bouts of volatility would be witnessed as
Nifty struggles to sustain above the 5300 level. In the
Index Fut. 353444 305611 15.65
meanwhile the markets would take cues from the
Stock Fut. 458963 446619 2.76
forthcoming earnings season, Rupee, global markets and
Index Opt. 2218173 2054058 7.99 the crude prices. The support levels for Nifty are placed at
Stock Opt. 133233 137076 -2.80 5250, 5114, 5080, 4950 and 4841. The Nifty faces resistance
Total 3163813 2943364 5.45 at the 5333, 5379 and 5500 levels.
NOTE - *- Source – BSE & NSE
Sanjay Bhatia (AVP – Technical Research), Email sanjay@keynotecapitals.net Yahoo Id: keytechnicals@yahoo.in
Keynote Capitals Ltd.
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The Ruby, 9 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
Bajaj Hind 32.50 Buy Above 33.00 30.75 6.82 38 15.15
BPCL 759.95 Buy Above 763.00 747.50 2.03 797 4.46
DLF 213.20 Buy Above 215.00 208.00 3.26 230 6.98
* 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 17426 17435 17518 17610 17785 17343 17259 17084
S&P CNX NIFTY 5288 5290 5315 5341 5392 5264 5239 5188
NIFTY JULY FUT. 5306 5304 5336 5366 5428 5274 5241 5179
Keynote Capitals Ltd.
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The Ruby, 9 Floor, Senapati Bapat Marg, Dadar (W), Mumbai, India – 400028. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

3. Stocks to watch out today
Aban, Asian Paints, Aurobindo Pharma, Axis Bank, Bajaj Hind, Balrampur Chini, Bharti Airtel, Coal India, DLF, Dr. Reddys,
HDFC, Hindalco, HPCL, Idea, IOC, IRB, Jet Airways, JSW Steel, Kotak Bank, McDowell, MRPL, Rel. Capital, Renuka Sugar,
SCI, Sesa Goa, Sintex, Sun TV, Tata Comm; Tata Global, Titan, TTK Prestige, Yes Bank
Ashok Leyland, Hero Motocorp, HUL, ITC, Max India, TCS
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