The domestic Indian markets opened lower due to negative global cues but recovered later in the day led by positive European markets. The indices ended the day with moderate gains near the highs. Technically, the market breadth was positive but lower volumes. The markets are expected to test the 4747 resistance level but selling pressure may return if this level is not sustained. Key support and resistance levels for the Nifty are also provided.

1. Daily Technical Outlook
23rd December 2011
Indices * Close % Chg.
Mirroring the negative set of global market cues the domestic
BSE SENSEX 15813.36 0.82 markets witnessed a subdue opening. The markets drifted
S&P CNX NIFTY 4733.85 0.87 lower amidst lackluster volumes as buying support remained
NIFTY DEC. FUT. 4748.90 0.79 absent. However, markets managed a smart recovery on
India VIX 26.84 -2.50 back of positive European market cues. This led to short
covering and the markets erased all the losses to trade with
S&P CNX NIFTY Technical Levels
gains. The markets ended the day with moderate gains to
Level 1 Level 2 Level 3
close near the highs for the day. The top gainers for the day
Support 4563 4481 4353 were DLF, PNB, Tata Motors, IDFC, JP Associates, SBI,
Resistance 4747 4987 5037 Powergrid, Axis Bank, Tata Power and ICICI Bank.
Moving Averages S&P CNX NIFTY
Technically, the market breadth remained positive amidst
50 Day SMA 4983.49
◄Negative lower volumes. The global market set of cues are
100 Day SMA 5024.66 positive. The domestic markets are likely to witness a
200 Day SMA 5302.77 ◄Negative positive opening. The relief rally continued on the
bourses. The KST, RSI and Stochastic have moved above
Volume (Lacs Shares) *
their respective averages, which would further lead to
22/12/11 21/12/11 % Chg. buying support. The Nifty has formed a positive
BSE 1975 2289 -13.72 divergence pattern, which would give further impetus to
NSE 5728 5949 -3.72 extend the relief rally. However, the prevailing technical
Total 7703 8238 -6.50 negatives hold good and are likely to cap upside gains.
The MACD remains placed below its average. More so
Turnover ( ` Crores) * the KST and MACD are placed in the negative and warn
22/12/11 21/12/11 % Chg. of impending selling pressure. The Nifty continues to
BSE 2039.32 1930.59 5.63 trade below its 50-day SMA and 200-day SMA. The 50-day
NSE 9551.16 9889.45 -3.42 SMA remains placed below the 100-day SMA. All these
NSE F&O 154914.57 147411.10 5.09 conditions would lead to selling pressure at higher
Total 166505.05 159231.14 4.57
levels. The ADX, -DI line and +DI line are moving
sideways, indicating a range bound trend. The market
F&O Contracts Traded (NSE) * sentiment remains tentatively cautious. The relief rally is
22/12/11 21/12/11 % Chg. likely to continue and markets are likely to test the 4747
Index Fut. 723190 762175 -5.11 resistance level. Now, it is important that the Nifty moves
Stock Fut. 857236 781224 9.73
and sustains above the 4747 level for the rally to
continue, otherwise the markets will again witness
Index Opt. 4919227 4691167 4.86
selling pressure. In the meanwhile the markets would
Stock Opt. 189174 165709 14.16
take cues from the global markets and crude prices. The
Total 6688827 6400275 3.93 support levels for Nifty are placed at 4563, 4481, 4353 and
Market Breadth (NSE) *
4003. The Nifty faces resistance at the 4747, 4987, 5037 and
5161levels.
Advances 880
Declines 591
Same 75
Total 1546
A/D Ratio 1.49 : 1
NOTE - *- Source – BSE & NSE
Sanjay Bhatia (AVP – Technicals), Email Id sanjay@keynotecapitals.net Yahoo Chat Id: keytechnicals@yahoo.in
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2. Short Term Trading Ideas Based On Technical Analysis (5 - 7 Days)
Stop
Initiation Stop Loss Target
Stock Close Action Price Loss * (%) Target (%) Remarks
Financial Tech. 558.90 Buy Above 560 546.50 2.41 590 5.36
HDFC 662.45 Buy Above 665 653.75 1.69 690 3.76
Titan 175.45 Buy Above 178 172.50 3.09 190 6.74
TGT of 740
Achieved
given SELL
@ 770 on
AB Nuvo 748.10 Sell Below 743 753.50 1.41 720 3.10 22/12/11
* 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 15813 15707 15941 16069 16431 15579 15345 14983
S&P CNX NIFTY 4734 4702 4772 4810 4918 4664 4595 4487
NIFTY DEC. FUT. 4749 4716 4791 4834 4952 4673 4598 4480
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