1. Daily Technical Outlook
5th June 2012
Indices * Close % Chg. Markets respect 200-day Weekly SMA
BSE SENSEX 15988.40 0.15 Mirroring the weak global market cues the domestic markets
S&P CNX NIFTY 4848.15 0.14 witnessed a gap down opening below its 200-day weekly
NIFTY JUNE FUT. 4840.50 0.33 SMA. However, the markets managed to pull back from lower
India VIX 25.60 -4.37 levels on back of short covering and selective buying support.
Buying momentum picked up in the afternoon session as
S&P CNX NIFTY Technical Levels markets erased all the losses to trade with gains. The
Level 1 Level 2 Level 3 markets ended the day with modest gains to close near the
Support 4824 4777 4742 highs for the day. The top gainers for the day were JP
Resistance 4950 5070 5106 Associates, L&T, Siemens, ONGC, Bank of Baroda, BPCL,
Axis Bank, DLF, Tata Motors and PNB.
Moving Averages S&P CNX NIFTY
50 Day SMA 5108.34 Technically, the market breadth remained negative
100 Day SMA 5190.36 amidst lower volumes. The global market cues are
200 Day SMA 5065.70 ◄ Critical divergent. The domestic markets are likely to witness a
flat opening. The prevailing technical negatives
Market Breadth * BSE NSE continued to weigh on market sentiment. The Stochastic,
Advances 1204 621 KST and RSI are placed below their respective averages.
Declines 1449 842 Moreover, the KST and MACD are placed in the negative
Same 121 81 territory and warn of impending selling pressure. The
Total 2774 1544 Nifty remains placed below its 50-day SMA, 100-day SMA
A/D Ratio 0.83 : 1 0.74 : 1 and 200-day SMA. Moreover, the 50-day SMA is placed
below its 100-day SMA. The ADX line is moving higher,
Volume (Lacs Shares) * while the –DI line is placed at 37.70 level indicating
04/06/12 01/06/12 % Chg. sellers have an upper hand. The +DI line is moving lower.
BSE 1589 2029 -21.69 These negative technical conditions would lead to further
NSE 5080 5483 -7.36
selling pressure. However, a few positive technical
conditions still hold good. The MACD is still placed
Total 6669 7512 -11.23
above its average. Further, the Stochastic is nearing the
Turnover ( ` Crores) * oversold zone. Moreover, the Nifty’s 50-day SMA and
04/06/12 01/06/12 % Chg. 100-day SMA are placed above Nifty’s 200-day SMA.
BSE 1759.61 1873.85 -6.10
These positive technical conditions would prompt short
covering and selective buying support at lower levels.
NSE 8920.14 8947.20 -0.30
The market sentiment has turned tentative after the smart
NSE F&O 81583.31 79781.44 2.26
pull back rally helping the Nifty sustain above its 200-day
Total 92263.06 90602.49 1.83 weekly SMA. Now it is important that the markets witness
F&O Contracts Traded (NSE) * buying support and move above the 4950 resistance
level. The Nifty’s 200 day SMA support on weekly charts
04/06/12 01/06/12 % Chg.
is placed at 4825, which should act as good support
Index Fut. 441058 444173 -0.70 level. If Nifty fails to take support at this level then it is
Stock Fut. 443785 464907 -4.54 likely to move lower and possibly test the 4742 level. In
Index Opt. 2385506 2271315 5.03 the meanwhile the markets would take cues from the
Stock Opt. 162894 147652 10.32 Rupee, global markets and the crude prices. The support
Total 3433243 3328047 3.89 levels for Nifty are placed at 4824, 4777, 4742, 4624 and
4530. The Nifty faces resistance at the 4950, 5070, and 5106
NOTE - *- Source – BSE & NSE
levels.
Sanjay Bhatia (AVP – Technicals), Email Id sanjay@keynotecapitals.net Yahoo Chat 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
Axis Bank 988.00 Buy Above 994.00 978.00 1.61 1030 3.62
BPCL 716.50 Buy Above 720.50 707.00 1.87 750 4.09
Hexaware 122.30 Buy Above 123.00 120.75 1.83 128 4.07
* 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 15988 15917 16085 16181 16444 15821 15653 15389
S&P CNX NIFTY 4848 4826 4881 4914 5002 4793 4738 4650
NIFTY JUNE FUT. 4841 4818 4875 4909 5001 4783 4726 4635
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, Adani Enterprises, Asian Paints, Bata, BEML, Bombay Dying, Cairn, Cipla, Colgate, Dabur, Dr. Reddys, GE Shipping,
HDFC, HUL, Jindal Steel, Onmobile, Opto Circuit, Sterlite, Sun TV, Tata Chemicals, Tata Power, Titan, VIP
Ambuja Cements, Axis Bank, BPCL, Delta Corp; Dena Bank, DLF, HPCL, IOC, JP Associates, Oil India, ONGC.
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