The domestic Indian markets opened weakly and saw selling pressure and losses as investors took profits ahead of an upcoming derivatives expiration. The markets failed to show resilience and closed near their daily lows, with several major companies among the top decliners for the day. Technically, market breadth was negative with lower trading volumes, and indicators like the Stochastic, MACD, RSI and KST were in overbought territory, signaling potential for further profit taking and downward pressure. Support levels for the Nifty index were identified at 5400, 5327 and 5161.

1. Daily Technical Outlook
24th February 2012
Indices * Close % Chg. Mirroring the weak global market cues the domestic markets
BSE SENSEX 18078.50 -0.37 witnessed a subdue opening. Selling pressure and profit
S&P CNX NIFTY 5483.30 -0.40 taking continued on the bourses ahead of the derivative
NIFTY MAR. FUT. 5539.00 -0.43 segment expiry. The markets failed to show any kind of
India VIX 24.33 -9.21 resilience as buying support remained elusive. However, the
markets managed to come off the lows in the afternoon
S&P CNX NIFTY Technical Levels session due to short covering and buying. However, markets
Level 1 Level 2 Level 3 once again slipped in the red in the last hour of trade. The
Support 5400 5327 5161 markets ended the day with modest losses to close near the
Resistance 5681 5728 5885 lows for the day. The top losers for the day were JP Assoc;
Sesa Goa, Sterlite, Bharti Airtel, DLF, PNB, Ambuja Cement,
Moving Averages S&P CNX NIFTY Hero Motocorp, M&M and Rel. Comm.
50 Day SMA 5023.06
◄Positive
100 Day SMA 5015.65 Technically, the market breadth remained negative
200 Day SMA 5172.42 ◄Positive
amidst lower volumes. The global market set of cues are
divergent. The domestic markets are likely to witness a
Volume (Lacs Shares) * flat opening. The markets continued to witness
23/02/12 22/02/12 % Chg. correction on back of markets being placed in over
BSE 3234 4396 -26.43 bought zone. The few prevailing technical negatives also
NSE 12307 13003 -5.35
weighed on the market sentiment. The Stochastic, MACD
RSI and KST all are placed below their respective
Total 15541 17399 -10.68
averages and are also placed around the over bought
Turnover ( ` Crores) * zone. These conditions would lead to regular bouts of
23/02/12 22/02/12 % Chg.
profit taking and selling pressure. However, buying
support is expected to be witnessed at lower levels as
BSE 3223.17 3852.67 -16.34
Nifty remains placed above its key averages, viz; 50-day,
NSE 18316.45 18502.49 -1.01
100-day and 200-day SMA. Moreover the KST and MACD
NSE F&O 258770.85 224412.72 15.31 are placed in the positive territory, which augurs well for
Total 280310.47 246767.88 13.59 the markets. The Nifty remains placed above its
April’2011 descending trend line. The ADX line and +DI
F&O Contracts Traded (NSE) *
line are placed above the 30 level, indicating buyers have
23/02/12 22/02/12 % Chg.
an upper hand. Moreover, Nifty’s 50-day SMA has moved
Index Fut. 974529 918957 6.05 above Nifty’s 100-day SMA, All these positive conditions
Stock Fut. 1340534 1449197 -7.50 would help in fueling buying support at regular intervals.
Index Opt. 6760165 5312176 27.26 The market sentiment remains cautious. Rise in crude
Stock Opt. 246672 255681 -3.52 prices remains a cause of concern. Now, it is important
Total 9321900 7936011 18.13 that the markets witness buying support at lower levels
for the Nifty to move higher and test the 5681 resistance
Market Breadth (NSE) * level. Intermediate bouts of volatility and choppiness are
Advances 476 likely to be witnessed. In the meanwhile the markets
Declines 1024 would take cues from the news flow on state elections,
Same 62 Union Budget, the global markets and the crude prices.
Total 1562
The support levels for Nifty are placed at 5400, 5327, 5161
and 5037. The Nifty faces resistance at the 5681, 5728 and
A/D Ratio 0.46 : 1
5885 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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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
Aban 499.00 Sell Below 495 515.00 4.04 450 9.09
ACC 1296.50 Sell Below 1292 1315.50 1.82 1240 4.02
Bharti Airtel 338.70 Sell Below 336 343.50 2.23 319 5.06
* 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 18079 18111 18217 18355 18600 17973 17867 17623
S&P CNX NIFTY 5483 5494 5527 5570 5647 5450 5417 5341
NIFTY MAR. FUT. 5539 5544 5586 5633 5721 5498 5456 5368
Keynote Capitals Ltd.
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4 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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