1. Daily Technical Outlook
16th May 2012
Indices * Close % Chg. The domestic markets witnessed a subdue opening. The
BSE SENSEX 16328.25 0.69 markets drifted lower in the morning trade. However, the
S&P CNX NIFTY 4942.80 0.71 markets managed to come off the lows for the day on back of
NIFTY May FUT. 4942.25 1.10 short covering and selective buying support. The markets
India VIX 22.28 -4.21 managed to hold on to the gains. The markets ended the day
with modest gains to close near the highs for the day. The top
S&P CNX NIFTY Technical Levels gainers for the day L&T, Sesa Goa, Cairn India, Sterlite,
Level 1 Level 2 Level 3 Infosys Tech; Sun Pharma, Hero Motocorp, Jindal Steel, JP
Support 4777 4742 4636 Associates and DLF.
Resistance 4950 5070 5106
Technically, the market breadth remained positive amidst
Moving Averages S&P CNX NIFTY higher volumes, which is a positive sign for the markets.
50 Day SMA 5226.11 The global market cues are subdue. The domestic
100 Day SMA 5166.47 markets are likely to witness a gap down opening. As we
200 Day SMA 5095.56 ◄ Crucial had indicated the markets being placed in the over sold
zone has helped the markets witness a pull back rally.
Market Breadth (NSE) * The relief rally is likely to continue as the Stochastic and
Advances 789 RSI are still placed in the over sold zone. Moreover, the
Declines 663 Stochastic is placed above its average. The Nifty’s 50-
Same 85 day SMA remains placed above Nifty’s 100-day SMA and
Total 1537 200-day SMA. More so, the Nifty’s 100-day SMA is placed
A/D Ratio 1.19 : 1
above the Nifty’s 200-day SMA. These positive technical
conditions would prompt further short covering and
Volume (Lacs Shares) * selective buying support. However, the prevailing
15/05/12 14/05/12 % Chg. technical negatives continue to hold good and are likely
BSE 1758 1641 7.13
to weigh on the market sentiment. The Nifty remains
placed below its 50-day SMA, 100-day SMA and 200-day
NSE 5960 5174 15.20
SMA. The KST, MACD and RSI are still placed below their
Total 7718 6815 13.26
respective averages. More so the KST and MACD are
Turnover ( ` Crores) * placed in the negative territory and warn of impending
15/05/12 14/05/12 % Chg.
selling pressure. These negative technical conditions
would lead to further selling pressure. The ADX line and
BSE 1816.58 1832.46 -0.87
+DI line are moving sideways, but –DI line is placed at
NSE 9727.75 8960.60 8.56
the 31.82 level and has come off the recent highs,
NSE F&O 101977.99 71595.97 42.44 indicating sellers have started covering their short
Total 113522.32 82389.03 37.79 positions at lower levels. The market sentiment remains
negative. Now, it is important that the markets witness
F&O Contracts Traded (NSE) *
buying support at regular intervals for the Nifty to move
15/05/12 14/05/12 % Chg.
higher. The 200-day SMA remains a crucial resistance
Index Fut. 435781 324851 34.15 level for the markets. In the meanwhile the markets
Stock Fut. 472374 386695 22.16 would take cues from the monthly inflation data, USDINR,
Index Opt. 3059328 2040494 49.93 Q4 results season along with global markets and the
Stock Opt. 179296 148005 21.14 crude prices. The support levels for Nifty are placed at 4777,
Total 4146779 2900045 36.21 4742 and 4636. The Nifty faces resistance at the 4950, 5070,
5106 and 5250 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
Bajaj Auto 1608.65 Buy Above 1614 1575.00 2.42 1700 5.33
Infosys Tech. 2415.20 Buy Above 2420 2384.00 1.49 2500 3.31
LIC Hsg 244.45 Buy Above 247 243.40 1.46 255 3.24
* 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 16328 16274 16425 16521 16768 16177 16027 15780
S&P CNX NIFTY 4943 4922 4976 5009 5095 4889 4836 4749
NIFTY MAY FUT. 4942 4919 4978 5014 5109 4883 4824 4730
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
AB Nuvo, Ashok Leyland, BEL, Biocon, Exide, Glaxo Pharma, Havells, IDFC, Jet Airways, NTPC, OFSS, Oil
India, Orchid Chemicals, Pantaloon Retail, Tata Chemicals
ACC, Andhra Bank, Asian Paints, Bajaj Auto, Bajaj Holdings, BPCL, Cipla, Divis Labs, FT, Hero Motorcorp, India
Infoline, Infosys Tech; LIC Hsg; L&T, McDowell, MRPL, NMDC, Powergrid, Rolta, Sesa Goa, Siemens, Sun
Pharma, TTK Prestige, Tulip Telecom
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