- The domestic stock markets in India witnessed moderate losses and closed near the daily lows, as selling pressure increased in the last hour of trading. Key sectors like banking, auto, and metals declined. - Technically, the market breadth was negative with lower trading volumes, and most technical indicators pointed to further downside pressure. The markets are expected to see further declines and could test support at 4,353 in the near future. - Short term trading ideas based on technical analysis recommend selling specific stocks like Kotak Bank, M&M, and Yes Bank if they close below certain price levels, with target prices lower than current levels.

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21st
December 2011
Mirroring the mix set of global market cues the domestic
markets witnessed a flat opening. Steady selling pressure
was witnessed as markets drifted lower amidst low volumes.
The markets showed no resilience against selling pressure as
buying support remained absent. However, occasional bouts
of short covering were witnessed, which helped the markets
plough back marginal losses. However, selling pressure
gained momentum in the last hour of trade as markets
extended losses. The markets ended the day with moderate
losses to close near the lows for the day. The top losers for
the day were Jp Associates, Hero Motocorp, Tata Power,
L&T, Tata Steel, Rel. Comm., Sesa Goa, Kotak bank, Bharti
Airtel and BPCL.
Technically, the market breadth remained negative
amidst lower volumes. The global market set of cues are
positive. The domestic markets are likely to witness a
gap up opening. The only silver linings for the markets
remain the Stochastic being placed in the over sold zone,
which would lead to intermediate bouts of short covering
and lead to a relief rally. However, the prevailing
technical negatives would continue to weigh on the
markets. The Stochastic and the MACD have slipped
below their respective average. More so the KST and RSI
are already placed below their respective averages.
Further the KST and MACD are placed in the negative
and warn of impending selling pressure. The Nifty
continues to trade below its 50-day SMA and 200-day
SMA. The 50-day SMA remains placed below the 100-day
SMA. All these conditions would lead to further selling
pressure. The ADX and +DI line are moving lower, while
the -DI line is moving higher and is currently placed at
32.65 indicating sellers have an upper hand. The Nifty
has also formed a head and shoulder pattern, which
would result in further selling pressure. The market
sentiment remains negative. The markets are likely to
witness further fall and it could test the 4353 level in near
future. We reiterate our view that upsides should be used
to exit long positions and fresh short positions should be
added. In the meanwhile the markets would take cues
from the global markets and crude prices. The support
levels for Nifty are placed at 4481, 4353 and 4003. The Nifty
faces resistance at the 4563, 4747, 4987, 5037, 5161, 5230
and 5360 levels.
Indices * Close % Chg.
BSE SENSEX 15175.08 -1.33
S&P CNX NIFTY 4544.20 -1.49
NIFTY DEC. FUT. 4554.50 -1.50
India VIX 30.53 -0.16
S&P CNX NIFTY Technical Levels
Level 1 Level 2 Level 3
Support 4481 4353 4003
Resistance 4563 4747 4987
Moving Averages S&P CNX NIFTY
50 Day SMA 4987.74
100 Day SMA 5043.53
◄Negative
200 Day SMA 5309.92 ◄Negative
Volume (Lacs Shares) *
20/12/11 19/12/11 % Chg.
BSE 2103 2083 0.96
NSE 5830 6060 -3.79
Total 7933 8143 -2.57
Turnover ( ` Crores) *
20/12/11 19/12/11 % Chg.
BSE 1908.10 1844.17 3.47
NSE 9590.47 9868.69 -2.82
NSE F&O 138780.05 136646.71 1.56
Total 150278.62 148359.57 1.29
F&O Contracts Traded (NSE) *
20/12/11 19/12/11 % Chg.
Index Fut. 675450 709279 -4.77
Stock Fut. 636541 554154 14.87
Index Opt. 4576723 4491868 1.89
Stock Opt. 165991 178772 -7.15
Total 6054705 5934073 1.21
Market Breadth (NSE) *
Advances 382
Declines 1112
Same 48
Total 1542
A/D Ratio 0.34 : 1
NOTE - *- Source – BSE & NSE
Sanjay Bhatia (AVP – Technicals), Email Id sanjay@keynotecapitals.net Yahoo Chat Id: keytechnicals@yahoo.in
Daily Technical Outlook

2. Keynote Capitals Ltd.
4
th
Floor, Balmer Lawrie Bldg., 5, J. N. Heredia Marg, Ballard Estate, Fort, Mumbai, India – 400001. Tel: 3026 6000 / 2269 4322
www.keynotecapitals.com
Short Term Trading Ideas Based On Technical Analysis (5 - 7 Days)
Stock Close Action
Initiation
Price
Stop
Loss *
Stop
Loss
(%) Target
Target
(%) Remarks
Kotak Bank 449.35 Sell Below 447 457.00 2.24 425 4.92
TGT of 440
Achieved
given SELL
@ 465 on
20/12/11
M&M 647.00 Sell Below 647 661.00 2.16 616 4.79
Yes Bank 241.40 Sell Below 240 244.50 1.88 230 4.17
TGT of 240
Achieved
given SELL
@ 254 on
19/12/11
* 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 15175 15253 15370 15565 15878 15058 14941 14628
S&P CNX NIFTY 4544 4571 4611 4677 4783 4504 4465 4359
NIFTY DEC. FUT. 4555 4578 4617 4680 4782 4515 4476 4374

3. Keynote Capitals Ltd.
4
th
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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