The domestic stock markets witnessed moderate losses and closed near their daily lows. The Nifty slipped below important technical support levels like its 200-day simple moving average. Most technical indicators are below their averages and in negative territory, warning of further selling pressure. The markets lack strength and buying support remains absent. The key support levels for the Nifty are 5000, 4950 and 4859, while resistances are at 5047, 5103 and 5250.

1. Daily Technical Outlook
27th July 2012
Indices * Close % Chg.
BSE SENSEX 16639.82 -1.22
Markets critical but over sold
S&P CNX NIFTY 5043.00 -1.30
The domestic markets witnessed a flat opening. However,
NIFTY AUG. FUT. 5081.30 -1.13
sustained selling pressure was witnessed in the morning
India VIX 16.37 -2.26 trade as the Nifty once again slipped below critically important
S&P CNX NIFTY Technical Levels 200-day SMA extending losses. The markets failed to show
any resilience against selling pressure. Buying support
Level 1 Level 2 Level 3
remained absent. The markets ended the day with moderate
Support 5000 4950 4859
losses to close near the lows for the day, sustaining above its
Resistance 5047 5103 5250 200-day SMA. The top losers for the day were BHEL, TCS,
Simple Moving Averages S&P CNX NIFTY ACC, Jindal Steel, HUL, ITC, NTPC, Powergrid, Sun Pharma
50 Day SMA 5102.00
and Hero Motorcorp.
100 Day SMA 5154.94 Technically, the market breadth remained negative
200 Day SMA 5103.48 ◄Critical amidst higher volumes, which is a negative sign for the
markets. The global market cues are positive. The
Market Breadth * BSE NSE
domestic markets are likely to witness a firm opening.
Advances 842 311
The prevailing technical negatives continued to trigger
Declines 1934 1159 selling pressure on the bourses. The Nifty has slipped
Same 121 66 below its 20-day SMA and 200-day SMA. Further, it is
Total 2897 1536 already placed below its 100-day SMA. The Stochastic,
A/D Ratio 0.43 : 1 0.27 : 1 MACD, RSI and KST all remain placed below their
respective averages. Further, the MACD and KST are
Volume (Lacs Shares) * placed in the negative territory and warn of impending
26/07/12 25/07/12 % Chg. selling pressure. The Nifty’s 50-day SMA remains placed
BSE 2141 1735 23.40 below its 100-day SMA and 200-day SMA. The –DI line is
NSE 9265 5942 55.92 moving higher and is placed above the 30 level indicating
Total 11406 7677 48.57 sellers are gaining strength. These negative technical
conditions would continue to prompt selling pressure at
Turnover ( ` Crores) * regular intervals. The only silver lining for the market
26/07/12 25/07/12 % Chg. remains the Stochastic being placed in the over sold
BSE 2174.96 1818.43 19.61 zone, which would lead to intermediate bouts of short
NSE 13040.68 9010.66 44.73
covering. The market sentiment remains negative. The
markets continue to lack strength and buying support
NSE F&O 208719.32 181966.47 14.70
remains absent. Now it is important that the Nifty moves
Total 223934.96 192795.56 16.15
and sustains above its 200-day SMA on a closing basis
F&O Contracts Traded (NSE) * otherwise increased selling pressure is likely to be
26/07/12 25/07/12 % Chg.
witnessed. The markets would witness intermediate
bouts of volatility ahead of RBI’s monetary policy next
Index Fut. 781532 617922 26.48
week. In the meanwhile the markets would take cues
Stock Fut. 1224052 1040978 17.59
from the earnings season, Rupee, global markets and the
Index Opt. 5895266 5186561 13.66 crude prices. The support levels for Nifty are placed at 5000,
Stock Opt. 250481 207435 20.75 4950 and 4859. The Nifty faces resistance at the 5047, 5103,
Total 8151331 7052896 10.66 5250, 5333, 5379 and 5464 levels.
NOTE - * - Source – BSE & NSE
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 Fut 770.20 Sell Below 766.00 791.00 3.26 710 7.31
BHEL Fut 211.95 Sell Below 210.50 216.50 2.85 197 6.41
180.80 TGT
Achieved
given Buy @
175 on
Ambuja Cements 179.70 Buy Above 181.00 178.25 1.52 187 3.31 26/07/12
* 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 16640 16713 16827 17014 17315 16526 16411 16110
S&P CNX NIFTY 5043 5067 5102 5161 5255 5008 4973 4879
NIFTY AUG. FUT. 5081 5100 5130 5178 5256 5052 5022 4944
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
Ambuja Cements, Bajaj Auto, Dabur, Godrej Inds, MTNL, Powergrid, Sterlite, Sun Pharma
Aban, ABG Shipyard, AB Nuvo, Andhra Bank, Arvind, Ashok Leyland, Asian Paints, Axis Bank, BoB, BoI, Bombay Dying,
Cairn India, Delta Corp; Dena Bank, Essar Oil, Exide, GMDC, Havells, HCC, HDFC, HUL, IDBI Bank, IFCI, Indian Hotels,
JIndal Steel, JSW Energy, JSW Steel, Jubilant Foods, Karnataka Bank, LITL, L&T, Lupin, M&M, Mcleod Russel, NHPC,
ONGC, Orchid Chem; OBC, Pantaloon Retail, Patel Engg; PNB, Praj, Punj Lloyd, Raymond, RCOM, REC, Rel. Capital,
Reliance, Renuka, Rolta, Rel. Power, SAIL, SBI, SCI, Siemens, Syndicate Bank, Tata Chem; Tata Power, Tata Steel, UBI,
United Spirits, Wipro
NOTE:
TECHNICAL ANALYSIS ABBREVATIONS
SMA – Simple Moving Average
EMA – Exponential Moving Average
WMA – Weighted Moving Average
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