The domestic stock markets witnessed modest losses and closed near the daily lows. The markets lacked strength and buying support remained absent. Technically, market breadth was negative with lower volumes. The global cues were also negative and the domestic markets were likely to see a gap down opening. Key support and resistance levels for the Nifty are provided. Stocks to watch out for on the day are also mentioned.

1. Daily Technical Outlook
23rd July 2012
Indices * Close % Chg.
BSE SENSEX 17158.44 -0.70
Markets eagerly await start of reforms
S&P CNX NIFTY 5205.10 -0.72
The domestic markets witnessed a subdue opening on back
NIFTY JULY FUT. 5216.60 -0.77
of fresh political turmoil brewing in UPA. Sustained selling
India VIX 16.89 3.11 pressure was witnessed as markets traded with losses.
S&P CNX NIFTY Technical Levels However, the markets managed o seek support at the 5200
level leading to intermediate bouts of short covering.
Level 1 Level 2 Level 3
However, lack of follow up buying support and selling
Support 5114 5099 4950
pressure at higher levels saw the markets again move lower.
Resistance 5250 5333 5379 The markets ended the day with modest losses to close near
Simple Moving Averages S&P CNX NIFTY the lows for the day. The top losers for the day were BHEL,
50 Day SMA 5085.61
TCS, Jindal Steel, ACC, ITC, HUL, Powergrid, Hero
Motocorp, Sun Pharma and Grasim
100 Day SMA 5164.34
200 Day SMA 5099.45 ◄Critical Technically, the market breadth remained negative
amidst lower volumes. The global market cues are
Market Breadth * BSE NSE
negative. The domestic markets are likely to witness a
Advances 1165 514
gap down opening. The markets moved higher but
Declines 1659 953 struggled to sustain above the 5250 level. The prevailing
Same 120 77 technical negatives continued to weigh on market
Total 2944 1544 sentiment. The MACD, RSI and KST all remain placed
A/D Ratio 0.17 : 1 0.54 : 1 below their respective averages. Further, the Nifty’s 50-
day SMA remains placed below its 100-day SMA and 200-
Volume (Lacs Shares) * day SMA. These negative technical conditions would
20/07/12 19/07/12 % Chg. continue to prompt selling pressure at regular intervals.
BSE 1575 1810 -12.98 However, a few positive technical conditions still hold
NSE 4774 5275 -9.50 good. The Stochastic is placed above its average. More
Total 6349 7085 -10.39 so the MACD and KST are still placed in the positive
territory. The Nifty also remains placed above the 50-day
Turnover ( ` Crores) * SMA, 100-day SMA and 200-day SMA. These positive
20/07/12 19/07/12 % Chg. technical conditions would lead to buying support at
BSE 1727.85 1926.30 -10.30 regular lower levels. The ADX line, -DI line and +DI line
NSE 8440.64 9582.45 -11.92
are moving sideways, indicating a range bound market.
The markets continue to lack strength as buying support
NSE F&O 118784.33 111956.52 6.10
remains absent. The market sentiment remains cautious.
Total 128952.82 123465.27 4.44
Now it is important that the Nifty moves and sustains
F&O Contracts Traded (NSE) * above the 5250 resistance level otherwise increased
20/07/12 19/07/12 % Chg.
selling pressure is likely to be witnessed and Nifty could
test its 200-day SMA placed around 5099 level. The
Index Fut. 340862 325024 4.87
markets would witness intermediate bouts of volatility. In
Stock Fut. 572393 587802 -2.62
the meanwhile the markets would take cues from the
Index Opt. 3356972 3057908 9.78 earnings season, Rupee, global markets and the crude
Stock Opt. 224074 265279 -15.53 prices. The support levels for Nifty are placed at 5114, 5099
Total 4494301 4236013 6.09 and 4950. The Nifty faces resistance at the 5250, 5333,
NOTE - * - Source – BSE & NSE
5379, 5464 and 5500 levels.
Sanjay Bhatia (AVP – Technical Research), Email sanjay@keynotecapitals.net Yahoo 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. Jaldi 5
(Short Term Technical Ideas for 5 Trading Days)
Stop
Initiation Stop Loss Target
Stock Close Action Price Loss * (%) Target (%) Remarks
AB Nuvo 809.60 Buy Above 815 798.00 2.09 853 4.66
Bajaj Auto 1592.10 Buy Above 1596 1568.00 1.75 1658 3.88
Dabur 118.35 Buy Above 119 116.30 2.27 125 5.04
* 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 17158 17188 17246 17333 17479 17100 17042 16897
S&P CNX NIFTY 5205 5214 5230 5255 5296 5189 5173 5131
NIFTY JULY FUT. 5217 5224 5242 5266 5309 5199 5181 5138
Stocks To Watch Out Today
AB Nuvo, Bajaj Auto, Bata, Cairn India, Dabur, Divis, Havells, Jain Irrigation, JSW Steel, Jubilant Food, McDowell, McLeod
Russel, Mphasis, Oil India, Sobha
CBI, Dr. Reddys, Federal Bank, GE Shipping, HDFC, HDFC bank, HDIL, HOECL, ICICI Bank, Kotak Bank, Max India, NTPC,
ONGC, Oriental Bank, PFC, Praj, PTC, Punj Lloyd, Ranbaxy, SAIL, SBI, Sun TV, Syndiate Bank, Tat Chemicals
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. NOTE:
TECHNICAL ANALYSIS ABBREVATIONS
SMA – Simple Moving Average
EMA – Exponential Moving Average
WMA – Weighted Moving Average
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