- The domestic stock markets in India witnessed a gap down opening and sustained selling pressure throughout the morning trade due to negative global market cues. - The markets pulled back in the afternoon on positive European cues but gave up gains towards the close to end the day with moderate losses near the day's lows. - Technically, market breadth was negative with lower volumes and most indicators were below their averages, pointing to further downside pressure for markets. Key support levels to watch were 4747 and 4563 on the Nifty.

1. Daily Technical Outlook
12th December 2011
Indices Close % Chg. Mirroring the negative market cues, the domestic markets
BSE SENSEX 16213.46 -1.67 witnessed a gap down opening. Sustained selling pressure
S&P CNX NIFTY 4866.70 -1.56 was witnessed in the morning trade amidst occasional bouts
NIFTY DEC. FUT. 4885.90 -1.43 of pull back rally but markets failed to capitalize on these
India VIX 29.53 3.32 gains due to lack of buying support. The markets managed to
pull back in the afternoon session from the lows of the day on
S&P CNX NIFTY Technical Levels back of positive European market cues. Selective buying
Level 1 Level 2 Level 3 support helped the markets to touch a new intra-day high.
Support 4747 4563 4481 However, profit taking and selling pressure saw the markets
Resistance 4987 5037 5161
give up these gains. The markets ended the day with
moderate losses to close near the lows for the day. The top
Volume (Lacs Shares) losers for the day were SAIL, JP Associates, Tata Power,
09/12/11 08/12/11 % Chg.
M&M, Siemens, IDFC, Sterlite, BHEL, Bajaj Auto and ACC.
BSE 1824 1879 -2.93 Technically, the market breadth remained negative
NSE 5917 5933 -0.27 amidst lower volumes. The global market set of cues are
Total 7741 7812 -0.91 positive. The domestic markets are likely to witness a
Source – BSE & NSE positive opening. The Nifty remains placed below its 50-
Turnover ( ` Crores) day SMA, which is a negative sign for the markets. The
09/12/11 08/12/11 % Chg.
Stochastic, KST and RSI are placed below their
respective averages. Moreso the KST and MACD are
BSE 1897.66 1995.04 -4.88
placed in the negative. The Nifty continues to trade below
NSE 9952.24 10009.64 -0.57
its 200-day SMA. Further the 50-day SMA remains placed
NSE F&O 139747.90 130148.74 7.38 below the 100-day SMA. All these conditions would lead
Total 151597.80 142153.42 6.64 to further selling pressure. The ADX and +DI line are
Source – BSE & NSE
moving lower, while the -DI line has witnessed a breakout
Market Breadth (NSE) and is currently placed at 31.61 indicating sellers have an
Advances 435 upper hand. The only silver lining for the market remains
Declines 1028
the MACD, which is placed above its average and the
positive divergence pattern formed by Nifty continues to
Same 70
hold good. These would lead to regular bouts of short
Total 1533
covering and selective buying support will be witnessed.
A/D Ratio 0.42 : 1 The markets are poised crucially as the Nifty has formed
Source – NSE
a head and shoulder pattern. The 4747 continues to
Moving Averages S&P CNX NIFTY remain a crucial support level for Nifty. In the meanwhile
50 Day SMA 5016.72 the markets would take cues from the global markets,
◄Negative
100 Day SMA 5105.25 crude prices and IIP numbers. The support levels for Nifty
200 Day SMA 5335.48 ◄Negative
are placed at 4747, 4563 and 4481. The Nifty faces
resistance at the 4987, 5037, 5161, 5230 and 5360 levels.
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 16213 16246 16350 16486 16727 16110 16006 15766
S&P CNX NIFTY 4867 4876 4909 4952 5029 4833 4799 4722
NIFTY DEC. FUT. 4886 4893 4936 4985 5078 4843 4800 4708
Sanjay Bhatia (AVP – Technicals), Email Id sanjay@keynotecapitals.net Yahoo Chat Id: keytechnicals@yahoo.in
Keynote Capitals Ltd.
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4 Floor, Balmer Lawrie Bldg., 5, J. N. Heredia Marg, Ballard Estate, Fort, Mumbai, India – 400001. Tel: 3026 6000 / 2269 4322
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2. Short Term Trading Ideas Based On Technical Analysis (5 - 7 Days)
Stop
Initiation Stop Loss Target
Stock Close Action Price Loss * (%) Target (%) Remarks
Bharti Airtel 358.70 Sell Below 357.00 365.00 2.24 340.00 4.76
CESC 230.00 Sell Below 229.00 233.00 1.75 220.00 3.93
IDFC 109.65 Sell Below 109.00 112.00 2.75 102.00 6.42
* Stop Losses are to be considered strictly on Closing basis.
Keynote Capitals Ltd.
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4 Floor, Balmer Lawrie Bldg., 5, J. N. Heredia Marg, Ballard Estate, Fort, Mumbai, India – 400001. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

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