Daily Technical Outlook

24th November 2011

Indices BSE SENSEX S&P CNX NIFTY NIFTY DEC. FUT. India VIX Close
15699.97 4706.45 4720.65 30.68

% Chg.
-2.27 -2.20 -1.76 12.17

S&P CNX NIFTY Technical Levels

Level 1 Level 2 4481 4987 Level 3 4387 5037

Support Resistance

4563 4747

Mirroring the negative set of global market cues, the domestic markets witnessed a gap down opening. Sustained selling was witnessed as Nifty successfully tested our technical target of 4747. Buying support remained absent. Selling momentum increased as Nifty slipped below the 4747 level and a sharp fall was witnessed. The markets failed to show any resilience against selling pressure. The markets ended the day with large losses to close near the lows for the day. The top losers for the day were JP Associates, Ranbaxy, IDFC, HDFC Bank, Bharti Airtel, BHEL, BPCL, Rel. Infra, Jindal Steel and Reliance. Technically, the market breadth remained negative amidst higher volumes, which is a negative sign for the markets. The global market set of cues are negative. The domestic markets are likely to witness a negative opening. The prevailing technical negatives have led to the current sharp fall on the bourses as Nifty closed below the crucial 4747 support level. The Nifty continues to trade below its 50-day SMA, which is a short term negative. The RSI, KST and MACD are placed below their respective averages. Moreso, the KST and MACD are placed in the negative and warn of impending selling pressure. The Nifty continues to trade below its 200-day SMA. Further the 50-day SMA remains placed below the 100-day SMA. All these conditions would lead to further selling pressure especially at higher levels. However, the markets will witness occasional bouts of short covering and selective buying support as the Stochastic and RSI are placed in the over sold zone. Moreso, the Stochastic is placed above its average. The ADX and +DI line are moving sideways, but DI line is placed at 42.11 level. The market sentiment remains negative. The markets are likely to remain volatile due to derivative segment expiry. In the meanwhile the markets would take cues from the global markets and crude prices as Rupee trades above the 52 level against the dollar. The support levels for Nifty are placed at 4563, 4481 and 4387. The Nifty faces resistance at the 4747, 4987, 5037 and 5161.
Intra-day Resistance R1 R2 R3
15953 4777 4797 16207 4848 4874 16698 4986 5024

Volume (Lacs Shares)

23/11/11 22/11/11 2087 6059 8146 % Chg. 7.14 11.92 10.70

BSE NSE Total

2236 6782 9018

Source BSE & NSE

Turnover ( ` Crores)
23/11/11 22/11/11 1973.95 10200.41 186019.48 198193.84 % Chg. 1.89 0.98 29.26 27.53

BSE NSE NSE F&O Total

2011.32 10300.84 240442.89 252755.05

Source BSE & NSE

Market Breadth (NSE) Advances Declines Same Total A/D Ratio

Source NSE

310 1190 44 1544 0.26 : 1

Moving Averages S&P CNX NIFTY 50 Day SMA 100 Day SMA 200 Day SMA
5043.97 5185.31 5362.57 Negative Negative

Indices
BSE SENSEX S&P CNX NIFTY NIFTY DEC. FUT.

Close
15700 4706 4721

Pivot Point
15716 4709 4724

S1

Intra-day Support S2 S3
15225 4570 4574 14734 4432 4424

15463 4638 4647

Sanjay Bhatia (AVP Technicals), Email Id sanjay@keynotecapitals.net

Keynote Capitals Ltd.

Yahoo Chat Id: keytechnicals@yahoo.in

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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Short Term Trading Ideas Based On Technical Analysis (5 - 7 Days)

Stop Loss (%)
4.12

Stock
Alok Textiles

Close
17.20

Action
Sell Below

Initiation Price
17.00

Stop Loss *
17.70

Target
15.50

Target (%)
8.82

Remarks
TGT of 338 Achieved given Sell @ 358 on 18/11/11 TGT of 759 Achieved given Sell @ 806 on 18/11/11

Bombay Dying

342.80

Sell Below

340.00

351.25

3.31

315.00

7.35

Reliance

773.40

Sell Below

770.00

796.00

3.38

712.00

7.53

* Stop Losses are to be considered strictly on Closing basis.

Keynote Capitals Ltd. 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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