The domestic stock markets opened positively but failed to sustain gains and closed flat, mirroring weak US market cues. The markets bounced back from support at 5250 but saw sustained selling pressure and lack of follow up buying. Top losers for the day were from sectors like metals, power, infrastructure and banks. Technically, the markets remain negative with indicators like RSI, KST and MACD below their averages, pointing to further downside. Support levels are at 5250, 5215 and 5118 while resistance is at 5333, 5386 and 5464.

1. Daily Technical Outlook
4th September 2012
Indices * Close % Chg. Markets turn weak
BSE SENSEX 17384.40 -0.26
S&P CNX NIFTY 5253.75 -0.09 Mirroring the US market cues the domestic markets
NIFTY SEPT. FUT. 5282.90 -0.17 witnessed a positive opening. However, markets failed to
India VIX 17.28 -0.11 sustain higher on back of sustained selling pressure and lack
of follow up buying support. The markets managed to bounce
S&P CNX NIFTY Technical Levels back from around the 5250 support level. Buying support was
Level 1 Level 2 Level 3 witnessed around this level leading to intermediate bouts of
Support 5250 5215 5118 short covering. The markets ended the day on a flat note to
Resistance 5333 5386 5464 close near the lows for the day. The top losers for the day
were SAIL, Jindal Steel, Tata Power, Siemens, IDFC, Ambuja
Simple Moving Averages S&P CNX NIFTY Cements, GAIL, Axis Bank, Tata Motors and ONGC.
50 Day SMA 5260.27 ◄Negative
100 Day SMA 5159.92 Technically, the market breadth remained positive amidst
200 Day SMA 5123.22 lower volumes. The global market cues are divergent.
The domestic markets are likely to witness a flat to
Market Breadth * BSE NSE positive opening. However, selling pressure is likely to
Advances 1424 807 follow. The prevailing technical negatives would continue
Declines 1392 656 to weigh on the market sentiment. The RSI, KST and
Same 104 99 MACD are still placed below their respective averages,
Total 2920 1562 which would lead to further selling pressure. Moreover,
A/D Ratio 1.02 : 1 1.23 : 1
the Nifty has formed a negative divergence pattern. The
Nifty’s 50-day SMA has also breached the Nifty, which is
Volume (Lacs Shares) * a short term negative for the markets. However, a few
03/09/12 31/08/12 % Chg. prevailing technical positives still hold good, which
BSE 1649 1827 -9.74
would lead to buying support at lower levels. The
Stochastic remains placed above its average and is also
NSE 4700 6043 -22.23
placed around the over sold zone. Moreover, the MACD
Total 6349 7870 -19.33
and KST are still placed in the positive territory, which
Turnover ( ` Crores) * augurs well for the markets. The Nifty remains placed
03/09/12 31/08/12 % Chg.
above its 100-day SMA and 200-day SMA. More so the
Nifty’s 50-day SMA remains placed above Nifty’s 100-day
BSE 1644.48 1843.66 -10.80
SMA and 200-day SMA, the later being called the ‘Golden
NSE 7821.01 10907.47 -28.30
Cross breakout’. These positive conditions would lead to
NSE F&O 76087.21 88766.77 -14.28 buying support at lower levels. The ADX line, +DI line and
Total 85552.70 101517.90 -15.73 –DI line are moving sideways indicating a range bound
trend. The market sentiment remains negative. Now, it is
F&O Contracts Traded (NSE) *
important that markets witness buying support at regular
03/09/12 31/08/12 % Chg.
intervals. In the meanwhile the markets would take cues
Index Fut. 292330 397573 -26.47 from global markets, Rupee, and the crude prices. The
Stock Fut. 370955 420855 -11.86 support levels for Nifty are placed at 5250, 5215, 5118 and
Index Opt. 2054932 2343681 -12.32 5047. The Nifty faces resistance at the 5333, 5386, 5464,
Stock Opt. 153366 185378 -17.27 5500, 5565 and 5607 levels.
Total 2871583 3347487 -9.58
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
Axis Bank Fut 982.90 Sell Below 982.00 996.50 1.48 950 3.26
Bata 903.75 Buy Above 907.50 895.00 1.38 935 3.03
Cipla 384.80 Buy Above 386.55 380.75 1.50 399 3.22
* 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 17384 17415 17480 17575 17735 17319 17254 17094
S&P CNX NIFTY 5254 5264 5285 5317 5370 5233 5212 5159
NIFTY SEPT. FUT. 5283 5293 5314 5345 5397 5262 5241 5189
Stocks To Watch Out Today
Aban, AB Nuvo, Ambuja Cements, Axis Bank, BPCL, GAIL, GE Shipping, HPCL, IDFC< JSW Steel, Kotak Bank, M&M,
ONGC, Piramal Healthcare, Rel. Infra, Siemens, Sterlite, Sun Pharma, Tata Power, Tata Stel, TCS, Tulip, TVS Motor,
Ultratech, Yes Bank, ZEEL
Aurobindo Pharma, Bata, Biocon, Century Textiles, Cipla, Coal India, Dabur, Exide, FT, Godrej Inds, Havells, HCC, HCL Tech;
HDFC, IRB, Jubilant Foods, Maruti, McLeod Russel, OFSS, Petronet, Ranbaxy, Renuka Sugar, Union Bank, VIP
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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