1. Daily Technical Outlook
22nd May 2012
Indices * Close % Chg. Mirroring the divergent global market cues the domestic
BSE SENSEX 16183.26 0.19 markets witnessed a flat opening. Selective buying support
S&P CNX NIFTY 4906.05 0.30 along with short covering was witnessed as markets moved
NIFTY May FUT. 4893.90 0.10 higher. But lack of follow up buying support saw the Nifty
India VIX 23.92 1.57 struggle around the 4950 resistance level. The markets
ended the day with modest gains to close near the lows for
S&P CNX NIFTY Technical Levels the day. The top losers for the day were Wipro, ITC, Infosys
Level 1 Level 2 Level 3 Tech; Jindal Steel, Powergrid, HUL, ACC, Ambuja Cement,
Support 4777 4742 4624 Sterlite and NTPC. The top gainers for the day were Tata
Resistance 4950 5070 5106 Power, Bank of Baroda, Rel. Infra, SBI, BHEL, Maruti, L&T,
Coal India, Hindalco and Kotak Bank.
Moving Averages S&P CNX NIFTY
50 Day SMA 5194.98 Technically, the market breadth remained positive amidst
100 Day SMA 5172.23 lower volumes, indicating lack of participation at higher
200 Day SMA 5082.73 ◄ Critical levels. The global market cues are positive. The domestic
markets are likely to witness a gap up opening. As we
Market Breadth (NSE) * had indicated the pull back rally continued on the
Advances 943 bourses. The RSI and the Stochastic are already placed
Declines 504 above their respective averages. Moreover, the
Same 81 Stochastic and RSI are still placed around the over sold
Total 1528 zone. Further the Nifty’s 50-day SMA remains placed
A/D Ratio 1.87 : 1
above Nifty’s 100-day SMA and 200-day SMA. More so,
the Nifty’s 100-day SMA is placed above the Nifty’s 200-
Volume (Lacs Shares) * day SMA. These positive technical conditions would
21/05/12 18/05/12 % Chg. prompt further short covering and selective buying
BSE 1591 2024 -21.39
support. However, the prevailing technical negatives
continue to hold good and are likely to cap upside gains.
NSE 4951 5896 -16.04
The Nifty remains placed below its 50-day SMA, 100-day
Total 6542 7920 -17.41
SMA and 200-day SMA. Further the KST and MACD are
Turnover ( ` Crores) * placed below their respective averages and also in the
21/05/12 18/05/12 % Chg.
negative territory and warn of impending selling
pressure. These negative technical conditions would
BSE 1579.46 2024.18 -21.97
lead to selling pressure especially at higher levels. The
NSE 7812.70 10581.01 -26.16
ADX line is moving higher but the -DI line has started
NSE F&O 97954.37 155862.13 -37.15 moving lower indicating sellers are covering shorts,
Total 107346.53 168467.32 -36.28 while the +DI line is moving lower. The market sentiment
remains tentative but pull back rally is likely to continue.
F&O Contracts Traded (NSE) *
Now, it is important that the markets witness follow up
21/05/12 17/05/12 % Chg.
buying support at higher levels for the Nifty to move
Index Fut. 383573 619222 -38.06 above the 4950 resistance level and test the
Stock Fut. 425930 591779 -28.03 psychologically important 5000 level. In the meanwhile
Index Opt. 2979944 4877313 -38.90 the markets would take cues from the USDINR, global
Stock Opt. 216427 362098 -40.23 markets and the crude prices. The support levels for Nifty
Total 4005874 6450412 -31.67 are placed at 4777, 4742, 4624 and 4530. 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
Asian Paints 3754.25 Buy Above 3760 3697 1.68 3900 3.72
Bank of Baroda 666.35 Buy Above 669 655 2.09 700 4.63
TGT of 900
Achieved
given Buy @
875 on
Bata 888.95 Buy Above 890 876 1.57 920 3.37 21/05/12
* 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 16183 16210 16271 16359 16508 16122 16062 15913
S&P CNX NIFTY 4906 4911 4933 4960 5009 4884 4862 4813
NIFTY MAY FUT. 4894 4903 4923 4952 5002 4874 4853 4804
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
Aban, Apollo Tyre, Arvind, Bombay Dying, Coal India, Divis Labs, DLF, Federal Bank, GE Shipping, Godrej Inds; Grasim,
GVK, Havells, HCC, Hindalco, HOECL, IBRealestate, ICICI Bank, IDFC, JP Associates, Kotak Bank, L&T, M&M, MRF, NHPC,
Oriental Bank of Commerce, PFC, Reliance, Reliance Infra, SAIL, SBI, SCI, Sun Pharma, Suzlon, Tata Power, Tata Steel,
Union Bank, Vijaya Bank, Yes Bank
BPCL, OFSS, Oil India, OnMobile, Opto Circuit, Tata Chemicals, Tulip Telecom, Uniphos
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