The domestic stock markets opened flat but saw selling pressure and profit taking in the morning due to a depreciating rupee. However, selective buying later pushed the markets higher. Lack of follow up buying support prevented the markets from sustaining gains above the 5,000 level. The markets closed with marginal gains near the day's lows. Technically, market breadth was positive with higher volumes, though indicators like the stochastic were in overbought territory and could cap further upside. The supports and resistances for the Nifty are provided. Stocks like BEML, Cairn India and Coal India are highlighted for trading ideas.

1. Daily Technical Outlook
30th May 2012
Indices * Close % Chg. The domestic markets witnessed a flat opening. Selling
BSE SENSEX 16438.58 0.13 pressure and profit taking was witnessed in the morning trade
S&P CNX NIFTY 4990.10 0.09 as the Rupee depreciated. However, the markets managed to
NIFTY May FUT. 4981.65 0.13 move higher on back of selective buying support and short
India VIX 24.03 1.47 covering. But lack of follow up buying support at higher levels
saw the markets struggle around the psychologically
S&P CNX NIFTY Technical Levels important 5000 level. The markets ended the day with
Level 1 Level 2 Level 3 marginal gains to close near the lows for the day. The top
Support 4950 4777 4742 gainers for the day were Cairn, HCL Tech; Maruti, Coal India,
Resistance 5070 5106 5250 Wipro, Ranbaxy, TCS, Tata Motors, TCS and Tata Steel.
Moving Averages S&P CNX NIFTY Technically, the market breadth remained positive amidst
50 Day SMA 5139.55 higher volumes, which is a positive sign for the markets.
100 Day SMA 5185.65 The global market cues are divergent. The domestic
200 Day SMA 5070.10 ◄ Critical markets are likely to witness a flat opening. The Nifty
struggled around the 5000 level on back of the
Market Breadth BSE NSE Stochastic being placed in the over bought zone. The
Advances 1421 754 RSI, KST, Stochastic and MACD all are still placed above
Declines 1281 685 their respective averages. Moreover, the Nifty’s 50-day
Same 128 97 SMA remains placed above Nifty’s 200-day SMA. The
Total 2830 1536 Nifty’s 100-day SMA is also placed above the Nifty’s 200-
A/D Ratio 1.11 : 1 1.10 : 1 day SMA. These positive technical conditions would lead
to regular bouts of buying support, which would lead to
Volume (Lacs Shares) * intermediate bouts of relief rally. However, the prevailing
29/05/12 28/05/12 % Chg. technical negatives continue to hold good and are likely
BSE 1919 1631 17.66 to cap upside gains. The Stochastic is placed in the over
NSE 5148 4520 13.90 bought zone. Moreover, the KST and MACD are placed in
Total 7067 6151 14.89
the negative territory and warn of impending selling
pressure. The Nifty remains placed below its 50-day
Turnover ( ` Crores) * SMA, 100-day SMA and 200-day SMA. Moreover, the 50-
29/05/12 28/05/12 % Chg. day SMA is placed below its 100-day SMA. These
BSE 1749.05 1594.53 9.69
negative technical conditions would lead to selling
pressure at regular intervals. The ADX line, the –DI line
NSE 8510.49 7386.83 15.21
and +DI line are moving sideways, indicating a range
NSE F&O 147429.87 136423.91 8.07
bound trend. The market sentiment remains tentative.
Total 157689.41 145405.27 8.45 Now it is important that the markets witness follow up
F&O Contracts Traded (NSE) * buying support at higher levels for Nifty to move above
the 5000 level to test its 200-day SMA resistance level.
29/05/12 28/05/12 % Chg.
The markets would witness intermediate bouts of
Index Fut. 537755 537801 -0.01
volatility and choppiness ahead of the derivative
Stock Fut. 922410 813801 13.35 segment expiry on Thursday. In the meanwhile the
Index Opt. 4276103 3983481 7.35 markets would take cues from the USDINR, global
Stock Opt. 228327 228418 -0.04 markets and the crude prices. The support levels for Nifty
Total 5964595 5563501 5.26 are placed at 4950, 4777, 4742, 4624 and 4530. The Nifty
NOTE - *- Source – BSE & NSE
faces resistance at the 5070, 5106 and 5250 levels.
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
BEML 436.05 Sell Below 433 443.50 2.42 410 5.31
Cairn India 336.75 Buy Above 340 329.50 3.09 363 6.76
Coal India 321.85 Buy Above 323 315.75 2.24 339 4.95
* 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 16439 16464 16519 16599 16733 16384 16330 16196
S&P CNX NIFTY 4990 4997 5013 5035 5073 4975 4959 4921
NIFTY MAY FUT. 4986 5007 5032 5077 4961 4941 4896 4986
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
Adani Enterprises, Allahabad Bank, Andhra Bank, Apollo Tyre, Asian Paints, Bajaja Auto, Cairn India, Coal India, Dena Bank,
Federal Bank, Fortis, GMDC, Godrej Inds, GSPL, GVK, HCL tech; HDIL, JSW Steel, Kotak Bank, McDowell, NPC, Pantaloon
Retail, Ranbaxy, Raymond, Rola, South Indian Bank, Tata Comm; Tata Power, Tata Steel, TCS, Wipro
BEML, BPCL, Cipla, HPCL, HUL, ITC, NMDC, Videocon
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