The document provides a daily technical outlook for the Indian markets on December 20th, 2011. It summarizes that the domestic markets opened lower, in line with negative global cues, and saw sustained selling pressure throughout the day. The markets bounced back from the lows but still closed with moderate losses. Technically, market breadth was negative with lower volumes and indicators like the 50-day and 200-day SMAs signaling further downside. The outlook expects the markets to open flat but remain under pressure from technical negatives. Support levels are identified at 4563, 4481, and 4353 while resistance is seen at 4747, 4987, 5037 and higher.

1. Daily Technical Outlook
20th December 2011
Indices * Close % Chg.
Mirroring the negative global market cues the domestic
BSE SENSEX 15379.34 -0.72 markets witnessed a gap down opening. Sustained selling
S&P CNX NIFTY 4613.10 -0.83 pressure was witnessed as markets extended morning
NIFTY DEC. FUT. 4623.85 -0.42 losses. The markets witnessed occasional bouts of short
India VIX 30.58 2.99 covering and selective buying support at lower levels. The
over all trend remained range bound for the better part of the
S&P CNX NIFTY Technical Levels
day. The markets witnessed intermediate bouts of short
Level 1 Level 2 Level 3
covering and selective buying support in the afternoon
Support 4563 4481 4353 session and bounced back from the lows of the day.
Resistance 4747 4987 5037 However, the markets still ended the day with moderate
losses to close near the highs for the day. The top losers for
Moving Averages S&P CNX NIFTY
the day were Axis Bank, BHEL, Rel. Comm., L&T, PNB, SBI,
50 Day SMA 4992.29
◄Negative Sesa Goa, DLF, ICICI Bank and Jindal Steel.
100 Day SMA 5053.50
200 Day SMA 5313.71 ◄Negative Technically, the market breadth remained negative
amidst lower volumes. The global market set of cues are
Volume (Lacs Shares) * mix. The domestic markets are likely to witness a flat
19/12/11 16/12/11 % Chg. opening. The prevailing technical negatives continue to
BSE 2083 2202 -5.40 hold good. The Nifty continues to trade below its 50-day
NSE 6060 6627 -8.55 SMA and 200-day SMA. The 50-day SMA remains placed
Total 8143 8829 -7.77 below the 100-day SMA. The KST and RSI remain placed
below their respective averages. Further the KST and
Turnover ( ` Crores) * MACD are placed in the negative and warn of impending
19/12/11 15/12/11 % Chg. selling pressure. All these conditions would lead to
BSE 1844.17 2187.93 -15.71 further selling pressure. The ADX and +DI line are
NSE 9868.69 11057.56 -10.75 moving lower, while the -DI line is moving higher and is
NSE F&O 136646.71 182602.40 -25.17
currently placed at 33.34 indicating sellers have an upper
hand. The Nifty has also formed a head and shoulder
Total 148359.57 195847.89 -24.25
pattern, which would result in further selling pressure.
F&O Contracts Traded (NSE) * The only silver linings for the markets remain the
19/12/11 16/12/11 % Chg.
Stochastic being placed above its average and in the
over sold zone, and the MACD, which is placed above its
Index Fut. 709279 973540 -27.14
average. Both these conditions would lead to
Stock Fut. 554154 679747 -18.48
intermediate bouts of short covering and buying support.
Index Opt. 4491868 5823957 -22.87 The markets sentiment remains negative. The markets
Stock Opt. 178772 219831 -18.68 are likely to witness further fall and it could test the 4353
Total 5934073 7697075 -17.84 level in near future. We reiterate our view that upsides
should be used to exit long positions and fresh short
Market Breadth (NSE) *
positions should be added. In the meanwhile the markets
Advances 265 would take cues from the global markets and crude
Declines 1229 prices. The support levels for Nifty are placed at 4563, 4481
Same 43 and 4353. The Nifty faces resistance at the 4747, 4987,
Total 1537 5037, 5161, 5230 and 5360 levels.
A/D Ratio 0.22 : 1
NOTE - *- Source – BSE & NSE
Sanjay Bhatia (AVP – Technicals), Email Id sanjay@keynotecapitals.net Yahoo Chat Id: keytechnicals@yahoo.in
Keynote Capitals Ltd.
th
4 Floor, Balmer Lawrie Bldg., 5, J. N. Heredia Marg, Ballard Estate, Fort, Mumbai, India – 400001. 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 800
Achieved
given SELL
@ 833 on
AB Nuvo 794.35 Sell Below 792.00 815.40 2.95 740.00 6.57 16/12/11
Allahabad Bank 131.25 Sell Below 130.00 134.05 3.12 121.00 6.92
TGT of 325
Achieved
given SELL
@ 340 on
Bharti Airtel 336.40 Sell Below 334.00 342.10 2.43 316.00 5.39 14/12/11
Kotak Bank 467.75 Sell Below 465.00 476.25 2.42 440.00 5.38
* 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 15379 15337 15483 15586 15835 15233 15087 14838
S&P CNX NIFTY 4613 4597 4639 4665 4732 4572 4530 4463
NIFTY DEC. FUT. 4624 4607 4652 4680 4753 4579 4533 4460
Keynote Capitals Ltd.
th
4 Floor, Balmer Lawrie Bldg., 5, J. N. Heredia Marg, Ballard Estate, Fort, Mumbai, India – 400001. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com

3. Disclaimer
This document is not for public distribution and has been furnished to you solely for your information and must not be reproduced or
redistributed to any other person. Persons into whose possession this document may come are required to observe these restrictions.
This material is for the personal information of the authorized recipient, and we are not soliciting any action based upon it. This report
is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or
solicitation would be illegal. It is for the general information of clients of Keynote Capitals Ltd. It does not constitute a personal
recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients.
We have reviewed the report, and in so far as it includes current or historical information, it is believed to be reliable though its
accuracy or completeness cannot be guaranteed. Neither Keynote Capitals Ltd., nor any person connected with it, accepts any liability
arising from the use of this document. The recipients of this material should rely on their own investigations and take their own
professional advice. Price and value of the investments referred to in this material may go up or down. Past performance is not a guide
for future performance. Certain transactions -including those involving futures, options and other derivatives as well as non-investment
grade securities - involve substantial risk and are not suitable for all investors. Reports based on technical analysis centers on studying
charts of a stock’s price movement and trading volume, as opposed to focusing on a company’s fundamentals and as such, may not
match with a report on a company’s fundamentals.
Opinions expressed are our current opinions as of the date appearing on this material only. While we endeavor to update on a
reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us
from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be
subject to change without notice. Our proprietary trading and investment businesses may make investment decisions that are
inconsistent with the recommendations expressed herein.
We and our affiliates, officers, directors, and employees world wide may: (a) from time to time, have long or short positions in, and buy
or sell the securities thereof, of company (ies) mentioned herein or (b) be engaged in any other transaction involving such securities
and earn brokerage or other compensation or act as a market maker in the financial instruments of the company (ies) discussed herein
or act as advisor or lender / borrower to such company (ies) or have other potential conflict of interest with respect to any
recommendation and related information and opinions.
The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the
subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly
related to specific recommendations or views expressed in this report.
No part of this material may be duplicated in any form and/or redistributed without Keynote Capitals Ltd’s., prior written consent.
Keynote Capitals Ltd.
th
4 Floor, Balmer Lawrie Bldg., 5, J. N. Heredia Marg, Ballard Estate, Fort, Mumbai, India – 400001. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com