The domestic stock markets opened lower, mirroring negative global cues. Selling pressure weighed on the markets, though short covering and selective buying provided some support. The announcement that GAAR implementation was deferred helped the markets recover losses and close with moderate gains near the day's highs. Technically, the markets remain below short-term moving averages, though long-term indicators provide some positives. The outlook is cautious amid divergent global cues.

1. Daily Technical Outlook
8th May 2012
Indices * Close % Chg. Mirroring the negative global market cues, the domestic
BSE SENSEX 16912.71 0.48 markets opened on a gap down note. Sustained selling
S&P CNX NIFTY 5114.15 0.54 pressure was witnessed as markets drifted lower but
NIFTY May FUT. 5125.95 0.55 occasional bouts of short covering and selective buying
India VIX 20.22 -4.26 support were witnessed. Short covering and buying support
gained momentum in the afternoon session on back of FM’s
S&P CNX NIFTY Technical Levels statement deferring GAAR. The markets not only recouped all
Level 1 Level 2 Level 3 losses but also traded with gains. The markets ended the day
Support 5070 4950 4777 with moderate gains to close near the highs for the day. The
Resistance 5115 5250 5333 top gainers for the day were BHEL, BPCL, L&T, DLF, Jindal
Steel, Grasim, Rel. Infra, IDFC, Maruti and Siemens.
Moving Averages S&P CNX NIFTY
50 Day SMA 5275.12 Technically, the market breadth remained positive amidst
100 Day SMA 5149.09 higher volumes, which augurs well for the markets. The
200 Day SMA 5114.98 ◄ Crucial global market cues are divergent. The domestic markets
are likely to witness a flat opening. The Nifty continues to
Volume (Lacs Shares) * be placed just below its long-term moving average the
07/05/12 04/05/12 % Chg. 200-day SMA and this level remains a decisive factor for
BSE 2947 2947 0.00 Indian markets. The markets witnessed a smart rally
NSE 7224 6619 9.15 coming off the lows for the day. However, the prevailing
Total 10171 9566 6.33
technical negatives still continue to hold good. The
Stochastic, KST, MACD and RSI are still placed below
Turnover ( ` Crores) * their respective averages. More so the KST is placed in
07/05/12 04/05/12 % Chg. the negative territory. The Nifty also remains placed
BSE 2628.94 2628.94 0.00 below its 50-day SMA, which is a short term negative.
NSE 11678.32 11474.63 1.78
These negative technical conditions would lead to selling
pressure at regular intervals. The ADX line and +DI line
NSE F&O 136157.05 111960.57 21.61
are move sideways, but –DI line remains placed above
Total 150464.31 126064.14 19.36
the 30 level, indicating sellers are gaining strength.
F&O Contracts Traded (NSE) * However, a few positives still hold good. The Nifty’s 50-
day SMA remains placed above Nifty’s 100-day SMA and
07/05/12 04/05/12 % Chg.
200-day SMA, the later being called the “Golden Cross”
Index Fut. 631083 514892 22.57
breakout. Moreso, the Nifty’s 100-day SMA is placed
Stock Fut. 560319 473942 18.23 above the Nifty’s 200-day SMA. These positive technical
Index Opt. 3970486 3190368 24.45 conditions would prompt buying support at lower levels.
Stock Opt. 221887 178221 24.50 The market sentiment remains cautious. Now, it is
Total 5383775 4357423 18.91 important that the markets witness buying support at
regular intervals for the Nifty to move higher. The 200-
Market Breadth (NSE) * day SMA remains a crucial resistance level for the
Advances 759 markets. In the meanwhile the markets would take cues
Declines 693 from the USDINR, Q4 results season along with global
Same 81 markets and the crude prices. The support levels for Nifty
Total 1533 are placed at 5070, 4950 and 4777. The Nifty faces
A/D Ratio 1.10 : 1 resistance at the 5115, 5250 and 5333 levels.
NOTE - *- Source – BSE & NSE
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. Short Term Trading Ideas Based On Technical Analysis (5 - 7 Days)
Stop
Initiation Stop Loss Target
Stock Close Action Price Loss * (%) Target (%) Remarks
TGT of 3700
Achieved
given Buy @
3560 on
Asian Paints 3644.40 Buy Above 3655 3589.00 1.81 3800 3.97 30/04/12
DLF 189.80 Buy Above 193 186.00 3.63 209 8.29
Titan 248.70 Buy Above 251 244.50 2.59 265 5.58
* 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 16913 16790 17067 17221 17651 16636 16360 15929
S&P CNX NIFTY 5114 5076 5163 5212 5349 5027 4939 4802
NIFTY MAY FUT. 5126 5089 5177 5227 5366 5038 4950 4812
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
ACC, Cipla, Esar Oil, Havells, HPCL, IOC, Jet Airways, Jindal Steel, JSW Steel, LIC Hsg; L&T, Mphasis, Rel.
Power, Ruchi Soya, Titan, Allahabad Bank, Balrampur Chini, Bank of Baroda, Cairn, HDFC Bank, Hexaware, IRB
Infra, IVRCL, IDBI Bank, Jain Irrigation, NTPC, PFC, REC, Renuka, Rolta, Unitech
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