The domestic markets opened lower, mirroring negative global cues. Selling pressure persisted as the markets drifted lower without signs of resilience or buying support. The markets ended the day with modest losses near the lows. Technically, market breadth was negative amid lower volumes. The document provides analysis of market indexes and individual stocks, and identifies support and resistance levels.

1. Daily Technical Outlook
24th May 2012
Indices * Close % Chg. Mirroring the negative global market cues the domestic
BSE SENSEX 15948.10 -0.49 markets witnessed a subdue opening. Sustained selling
S&P CNX NIFTY 4835.65 -0.51 pressure was witnessed as markets drifted lower. The
NIFTY May FUT. 4814.55 -0.55 markets failed to show any resilience as buying support
India VIX 27.13 11.23 remained absent. However, occasional bouts of short
covering were witnessed as markets remained around the
S&P CNX NIFTY Technical Levels over sold zone. The markets ended the day with modest
Level 1 Level 2 Level 3 losses to close near the lows for the day. The top losers for
Support 4777 4742 4624 the day were Bharti Airtel, Sesa Goa, Kotak Bank, Tata
Resistance 4950 5070 5106 Power, Bank of Baroda, SAIL, PNB, JP Ass; and Cairn India.
Moving Averages S&P CNX NIFTY Technically, the market breadth remained negative
50 Day SMA 5175.04 amidst lower volumes. The global market cues are
100 Day SMA 5176.49 divergent. The domestic markets are likely to witness a
200 Day SMA 5076.34 ◄ Critical firm opening on back of government biting the bullet and
raising petrol prices. However, follow up buying is
Market Breadth (NSE) * needed at higher levels for Nifty to test the 4950
Advances 507 resistance level. The prevailing technical negatives
Declines 934 continue to hold good and are weighing on market
Same 86 sentiment leading to selling pressure. The Stochastic has
Total 1527 slipped below its average. The RSI, KST and MACD are
A/D Ratio 0.54 : 1
already placed below their respective averages. More so
the KST and MACD are placed in the negative territory
Volume (Lacs Shares) * and warn of impending selling pressure. The Nifty
232/05/12 22/05/12 % Chg. remains placed below its 50-day SMA, 100-day SMA and
BSE 1710 1751 -2.34
200-day SMA. Moreover, the 50-day SMA has slipped
below its 100-day SMA. The ADX line and -DI line are
NSE 4964 5400 -8.07
trending higher and are placed above the 30 level
Total 6674 7151 -6.67
indicating sellers have an upper hand. These negative
Turnover ( ` Crores) * technical conditions would lead to selling pressure at
23/05/12 22/05/12 % Chg.
regular intervals. However, a few technical positives are
still in place. The RSI is still placed around the over sold
BSE 1821.04 1854.65 -1.81
zone. Further the Nifty’s 50-day SMA remains placed
NSE 8439.38 9031.31 -6.55
above Nifty’s 200-day SMA. More so, the Nifty’s 100-day
NSE F&O 136899.22 123622.32 10.74 SMA is placed above the Nifty’s 200-day SMA. These
Total 147159.64 134508.28 9.41 positive technical conditions would lead to regular bouts
of short covering and intermediate bouts of relief rally
F&O Contracts Traded (NSE) *
would be witnessed. The market sentiment remains
23/05/12 22/05/12 % Chg.
tentative. Now, it is important that the markets witness
Index Fut. 565629 503257 12.39 buying support at lower levels for the Nifty to move and
Stock Fut. 480313 487445 -1.46 test the 4950 resistance level. In the meanwhile the
Index Opt. 4440453 3847387 15.41 markets would take cues from the USDINR, global
Stock Opt. 194627 216440 -10.08 markets and the crude prices. The support levels for Nifty
Total 5681022 5054529 11.30 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
Balrampur Chini 48.40 Sell Below 47.40 48.50 2.32 45 5.06
Cipla 309.95 Sell Below 309.00 313.00 1.29 300 2.91
Crompton Greaves 111.25 Sell Below 110.50 114.50 3.62 102 7.69
* 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 15948 15932 16018 16087 16242 15863 15777 15622
S&P CNX NIFTY 4836 4831 4858 4881 4931 4808 4781 4732
NIFTY MAY FUT. 4815 4812 4841 4868 4924 4785 4756 4699
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
3i Infotech, Bharat Forge, Dabur, Delta Corp; Divis Labs, GMR Infra, Havells, Jet Airways, Jubilant Foods, Ranbaxy, ZEEL
ACC, Ambuja Cements, DCHL, DLF, Federal Bank, FT, GE Shipping, Glaxo, GMDC, Godrej Inds, GSPL, HDFC Bank, Hero
Motocorp, IDBI bank, Idea, IFCI, Indian Hotels, Jain Irrigation, JSW Steel, Kotak Bank, Mphsis, Renuka Sugar, Sesa Goa,
Sobha, Sterlite, Tata Chemicals, Titan, TTK Prestige, Voltas
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