The domestic stock markets opened flat but turned positive due to short covering and selective buying after monthly inflation figures were announced. The markets ended the day with gains and closed near the highs, with the Nifty closing above 5000. Technically, market breadth was positive with higher volumes. The global cues are positive but domestic markets are likely to have a flat opening. Support levels are at 4987, 4757, and 4563 while resistance is at 5161, 5200, and 5325.

1. Daily Technical Outlook
15th September 2011
Indices Close % Chg. Mirroring the mix set of global market cues, the domestic
BSE SENSEX 16709.60 1.47 markets witnessed a flat but positive opening. The morning
S&P CNX NIFTY 5012.55 1.45 trend remained range bound ahead of the monthly inflation
NIFTY SEP. FUT. 5019.15 1.55 figures. However, selling pressure increased once the
India VIX 32.45 -0.97
inflation data was announced. However, positive European
markets cues led to short covering and selective buying
S&P CNX NIFTY Technical Levels support helping the markets come off the lows of the day. The
Level 1 Level 2 Level 3
markets ended the day with handsome gains to close near
the highs for the day. Nifty closed above the 5000 level. The
Support 4987 4757 4563
top gainers for the day were JP Assoc., Infosys, HCL Tech,
Resistance 5161 5200 5325
Wipro, Axis Bank, HUL, Rel. Capital, SAIL and Tata Steel.
Volume (Lacs Shares) Technically, the market breadth remained positive amidst
14/09/11 13/09/11 % Chg. higher volumes, which is a positive sign for the markets.
BSE 2902 2600 11.62 The global market set of cues are positive. The domestic
NSE 6108 6283 -2.79 markets are likely to witness a flat opening. The Nifty
Total 9010 8883 1.43 continued to trade below the crucial support level of
Source – BSE & NSE 4987, leading to selling pressure. The prevailing
negatives continue to hold good and would further weigh
Turnover ( ` Crores)
on the market. The Nifty continues to trade below its 200-
14/09/11 13/09/11 % Chg.
day SMA. Further the 50-day SMA remains placed below
BSE 2623.14 2275.76 15.26 the 100-day SMA. The Stochastic is placed below its
NSE 10841.75 9832.73 10.26 average. The KST is placed in the negative territory. The
NSE F&O 130962.97 130862.98 0.08 –DI line has come below the 30 level indicating sellers
Total 144427.86 142971.47 1.02 are losing control The positive aspects for the market
Source – BSE & NSE remains the RSI, KST and MACD are placed above their
Market Breadth (NSE)
respective averages. Moreso the MACD is placed in the
positive territory. These conditions would lead to short
Advances 825
covering at lower levels along with selective buying
Declines 619
support. The market sentiment remains cautious. The
Same 78 Nifty has managed to close above the 4987 level, which
Total 1522 is a positive sign. However, it is important that the
A/D Ratio 1.33 : 1 markets witness follow up buying support for it to test
Source – NSE the 5161 level. In the meanwhile the markets would take
Moving Averages S&P CNX NIFTY cues from the global markets, inflation data, news flow
50 Day SMA 5277.44
ahead of the RBI’s meeting on September 16th and
◄Negative advance tax numbers. The support levels for Nifty are
100 Day SMA 5398.37
placed at 4987, 4757, 4563 and 4387. The Nifty faces
200 Day SMA 5550.80 ◄Negative
resistance at the 5161, 5200 and 5325 levels.
Intra-day Resistance Intra-day Support
Indices Close Pivot Point R1 R2 R3 S1 S2 S3
BSE SENSEX 16710 16617 16847 16984 17351 16480 16250 15883
S&P CNX NIFTY 5013 4985 5053 5094 5203 4945 4877 4768
NIFTY SEP. FUT. 5019 4987 5065 5111 5236 4941 4862 4737
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
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2. Short Term Trading Ideas Based On Technical Analysis (5 - 7 Days)
Stop
Initiation Stop Loss Target
Stock Close Action Price Loss * (%) Target (%) Remarks
Bharti Airtel 377.35 Sell Below 375.00 382.00 1.87 360.00 4.00
CESC 275.35 Sell Below 273.00 282.50 3.48 252.00 7.69
Bajaj Auto 1629.30 Buy Above 1635.00 1665.00 -1.83 1700.00 3.98
Crompton
Greaves 156.90 Buy Above 159.00 154.00 3.14 170.00 6.92
Hexaware 76.45 Buy Above 77.00 74.75 2.92 82.00 6.49
* Stop Losses are to be considered on Closing basis only.
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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