1. Daily Technical Outlook
28th May 2012
Indices * Close % Chg. Mirroring the divergent market cues the domestic markets
BSE SENSEX 16217.82 -0.03 witnessed a flat opening. The overall trend remained
S&P CNX NIFTY 4920.40 -0.02 lackluster and listless ahead of the weekend. The markets
NIFTY May FUT. 4918.85 0.12 see-sawed in a narrow range for the better part of the day
India VIX 25.14 -1.37 struggling to sustain higher, while garnering selective buying
support at lower levels. The markets ended the day flat to
S&P CNX NIFTY Technical Levels close near the highs for the day. The top gainers for the day
Level 1 Level 2 Level 3 were GAIL, JP Associates, Rel. Infra, Tata Steel, Cairn, SBI,
Support 4777 4742 4624 SAIL, DLF, Sterlite and L&T.
Resistance 4950 5070 5106
Technically, the market breadth remained positive amidst
Moving Averages S&P CNX NIFTY lower volumes. The global market cues are divergent.
50 Day SMA 5154.00 The domestic markets are likely to witness a flat opening.
100 Day SMA 5180.89 Lack of follow up buying support and prevailing
200 Day SMA 5071.87 ◄ Critical technical negatives kept the markets quite. The
Stochastic and the MACD have moved above their
Market Breadth (NSE) * respective averages. Moreover, the RSI and KST are
Advances 844 already placed above their respective averages.
Declines 601 Moreover, the Nifty’s 50-day SMA remains placed above
Same 85 Nifty’s 200-day SMA. The Nifty’s 100-day SMA is placed
Total 1530 above the Nifty’s 200-day SMA. These positive technical
A/D Ratio 1.40 : 1 conditions would lead to regular bouts of buying support
and short covering, which would lead to intermediate
Volume (Lacs Shares) * bouts of relief rally. However, the prevailing technical
25/05/12 24/05/12 % Chg. negatives continue to hold good and are likely to cap
BSE 1785 2025 -11.85 upside gains. The KST and MACD are placed in the
NSE 4982 5244 -5.00
negative territory and warn of impending selling
pressure. The Nifty remains placed below its 50-day
Total 6767 7269 -6.91
SMA, 100-day SMA and 200-day SMA. Moreover, the 50-
Turnover ( ` Crores) * day SMA has slipped below its 100-day SMA. These
25/05/12 24/05/12 % Chg. negative technical conditions would lead to selling
BSE 1793.83 1945.50 -7.80
pressure at regular intervals and would cap the upside
gains. Though the ADX line and -DI line are trending
NSE 8120.96 9052.11 -10.29
these have started declining indicating sellers are
NSE F&O 122173.77 166423.31 -26.59
covering their shorts. The market sentiment remains
Total 132088.56 177420.92 -25.55 tentative. Now it is important that the markets witness
F&O Contracts Traded (NSE) * follow up buying support at higher levels for Nifty to test
and sustain above the 4950 resistance level. The markets
25/05/12 24/05/12 % Chg.
would witness intermediate bouts of volatility and
Index Fut. 432069 694100 -37.75 choppiness ahead of the derivative segment expiry on
Stock Fut. 609231 597841 1.91 Thursday. In the meanwhile the markets would take cues
Index Opt. 3787369 5357046 -29.30 from the USDINR, global markets and the crude prices.
Stock Opt. 192087 223972 -14.24 The support levels for Nifty are placed at 4777, 4742, 4624
Total 5020756 6872959 -23.30 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
Adani Enterprises 259.50 Buy Above 264 254.00 3.79 286 8.33
Aurobindo Pharma 117.00 Buy Above 119 115.40 2.62 127 6.75
GAIL 337.15 Buy Above 341 332.45 2.51 360 5.57
* 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 16218 16203 16288 16358 16513 16133 16048 15893
S&P CNX NIFTY 4920 4915 4941 4962 5008 4895 4869 4822
NIFTY MAY FUT. 4919 4910 4942 4965 5021 4886 4854 4798
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
APIL, Asian Paints, Aurobindo Pharma, Axis Bank, BOI, Bata, BF Utilities, Cairn, Canara Bank, Century Textiles, Coal India,
Cummins, DCB, Exide, Federal Bank, FT, Fortis, GAIL, Hero Motocorp, Hindalco, IFCI, JSW Steel, Jubilant Food, Kotak Bank,
L&T, McDowell, MRF, NTPC, ONGC, Polaris, Praj, Rel. Infra, SBI, SCI, Siemens, Sintex, Sterlite, Tata Comm; Tata Motors,
Wipro, Yes Bank,
Cipla, Dabur, DCHL, Guj Flourochemicals, HPCL, HUL, ITC, Opto Circuit
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