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Technical Newsletter 7 Apr 2011

MARKET VIEW
NSE Nifty daily chart

Nifty (5891.75 -18.30)

Markets opened on a positive note and Nifty made high at 5944 while tested lows at 5868 in first half
after which the movement became sideways for the broader index and only individual stocks
performed, finally Nifty closed below 5900 to end the session. Realty stocks were major gainers while
select Power counters performed better, IT and Banking stocks saw profit-taking. Volumes improved
on a day when Nifty closed in negative.

Outlook for Thursday: Nifty hasn’t been able to sustain above its resistance near 5930 for 2 nd
consecutive session, also we have seen Nifty closing in a narrow range for the last 3 sessions which
indicates slowing of upside momentum and selling pressure from higher levels. There may be a small
dip towards 5780-5800 levels before further rally if Nifty fails to trade above 5940 on sustained basis.

Ajit Mishra Tarun Narula Gaurav Sharma Tanmay G Purohit 1


ajit.mishra@religare.in tarun.narula@religare.in gaurav.sh@religare.in tanmay.purohit@religare.in
Technical Newsletter

Support & Resistance

INDEX (Spot) RESISTANCE 2 RESISTANCE 1 LTP SUPPORT 1 SUPPORT 2

SENSEX 20000 19820 19612.20 19520 19370


NIFTY 5980 5930 5891.75 5850 5790
BANK NIFTY 12010 11880 11730.05 11670 11540
CNX-IT 7410 7350 7270.85 7265 7150

Statistics
At the National Stock Exchange the advances were 857 Advances Declines
and declines were 543 whereas at the Bombay Stock NSE 857 543
Exchange advances were 1765 and declines were 1165.
On Wednesday, Bank Nifty lost 0.58% to close at BSE 1765 1165
11730.05; CNX-IT lost 0.59% to close at 7270.85.
Key Indices Performance
We have mentioned the important moving averages for INDEX (Spot) Close Change
the indices in the box.
SENSEX 19612.20 -0.38%
(A stock above its 200 EMA is considered a bullish NIFTY 5891.75 -0.31%
stock from its long term view (more than 6 months) &
stock closing below 200 EMA is considered in long BANK NIFTY 11730.05 -0.58%
term sell. CNX-IT 7270.85 -0.59%

A stock above its 50 EMA is considered a bullish stock


from its medium term view (more than 6 weeks) & Averages
stock closing below 50 EMA is considered in medium
Index Future 13 EMA 50 EMA 200 EMA
term sell.
NIFTY 5760.66 5634.76 5613.50
A stock above its 13 EMA is considered a bullish stock
BANK NIFTY 11526.09 11154.69 10939.26
from its short term view (more than 2 weeks) & stock
closing below 13EMA is considered in short term sell) CNX-IT 7055.43 6933.60 6639.63

NOTE

IN OUR TECHNICAL TREND SHEET, WE ARE MAINTAINING OUR POSITIVE


VIEW ON THE NIFTY AND OTHER INDICES. FOR FRESH LONG IN NIFTY,
WE’LL WAIT FOR 5700 SPOT LEVELS.

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Technical Newsletter

INDEX TREND

Trend Trend Closing Stop


INDEX SPOT Close Trend
changed on changed at loss
NIFTY 5891.75 Up 25-Mar-11 5654.25 5650
BANKNIFTY 11730.05 Up 15-Feb-11 10959.70 10900
CNX-IT 7270.85 Up 25-Mar-11 6930.65 6700
CNXMIDCAP 8342.00 Up 25-Mar-11 7824.15 7700

Nifty 50

Trend sheet

Trend Trend Closing Stop


STOCKS LTP Trend
changed on changed at Loss

ACC 1123.35 Up 14-Feb-11 998.40 1040


AMBUJACEM 151.9 Up 09-Mar-11 128.20 137
AXISBANK 1424.75 Up 04-Mar-11 1328.30 1350
BAJAJ-AUTO 1438.15 Up 14-Feb-11 1298.5 1380
BHARTIARTL 360.25 Up 23-Mar-11 330.6 340
BHEL 2210.6 Up 24-Mar-11 2048.3 2040
BPCL 595.3 Up 25-Mar-11 592.4 580
CAIRN 365.1 Up 22-Feb-11 330.25 345
CIPLA 321.2 Up 28-Mar-11 308.1 310
DLF 268.8 Up 23-Mar-11 234.65 245
DRREDDY 1639.35 Up 29-Mar-11 1598.4 1575
GAIL 461.8 Up 03-Mar-11 455.25 454
HCLTECH 486.8 Up 25-Mar-11 471.25 460
HDFC 698.35 Up 25-Mar-11 663.7 670
HDFCBANK 2395.75 Up 03-Mar-11 2193.15 2260
HEROHONDA 1643.25 Up 29-Mar-11 1544.6 1520
HINDALCO 215.45 Up 31-Mar-11 209.15 204
HINDUNILVR 275.35 Up 28-Mar-11 276.7 270
ICICIBANK 1111.25 Up 09-Mar-11 1035.25 1065
IDFC 163.05 Up 28-Feb-11 145.2 152

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Technical Newsletter

Rate when
Trend when Closing Stop
STOCKS LTP Trend trend
changed loss
changed
INFOSYSTCH 3283.25 Up 25-Mar-11 3163.05 3080
ITC 184.2 Up 28-Feb-11 169 175
JINDALSTEL 713.75 Up 30-Mar-11 688.75 675
JPASSOCIAT 97.9 Up 23-Mar-11 87.75 88
KOTAKBANK 456.1 Up 14-Feb-11 398.15 435
LT 1667.5 Up 28-Mar-11 1628.35 1570
M&M 733.45 Up 29-Mar-11 686.35 675
MARUTI 1310.85 Up 29-Mar-11 1237.95 1220
NTPC 188.05 Up 25-Mar-11 182.9 182
ONGC 296.5 Up 11-Mar-11 281.75 282
PNB 1197.95 Up 23-Mar-11 1110.35 1130
POWERGRID 105.2 Up 23-Feb-11 99.6 100
RANBAXY 466.15 Up 05-Apr-11 466.15 435
RCOM 112.25 Up 14-Mar-11 100.45 103
RELCAPITAL 625.8 Up 09-Mar-11 503.30 560
RELIANCE 1047.65 Up 17-Feb-11 953.95 1005
RELINFRA 685.45 Up 16-Mar-11 645.65 630
RPOWER 133.75 Up 04-Mar-11 121.15 124
SAIL 175.5 Up 22-Mar-11 162 164
SBIN 2796.25 Up 25-Mar-11 2710.85 2680
SESA GOA 314.75 Up 29-Mar-11 286.85 280
SIEMENS 890.35 Up 01-Feb-11 853.95 860
STER 178.35 Up 23-Mar-11 165.7 166
SUNPHARMA 449.35 Up 01-Mar-11 446.2 435
SUZLON 49.1 Up 1-Apr-11 48.65 45
TATAMOTORS 1280.35 Up 25-Mar-11 1183.85 1180
TATAPOWER 1314.55 Up 14-Mar-11 1250.65 1275
TATASTEEL 635.2 Up 25-Mar-11 615.45 605
TCS 1239.85 Up 29-Mar-11 1138.7 1130
WIPRO 481 Up 21-Feb-11 451.05 455

When trend changes to up, one can buy & when trend changes to down one can sell.
Resistance is mentioned for stocks which are in downtrend where one can go short with closing stop loss
as mentioned. Support is mentioned for stocks which are in uptrend where one can go long with closing
stop loss as mentioned.
Closing stop loss has to be seen at closing at 3:30pm. All stocks prices refer to spot price.
In this table of trends, it has been observed that if someone tries to take all levels of a stock or index
continuously, the losses are small but once the market catches a strong trend in either direction, one makes
a huge profit that time.
In our trend sheet,
i. If we underline only the stock name and closing stop loss then it means we have trailed our
closing stop loss.
ii. If we underline the complete line including all fields Stock’s name, LTP, Trend, Trend changed
on, Trend changed at & closing stop loss, it signifies fresh reversal of the trend.

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Recommendation

The Karnataka Bank Limited


KTKBANK KTKBANK: On daily chart, it has recovered swiftly from the
Symbol
bottom after testing the support zone around 98 levels. In
Buy/Sell Buy Wednesday’s trade, it broke out above the resistance zone of
LTP 118.45 117 levels indicating fresh buying opportunity. Accordingly,
Initiation range 116-118 one may initiate buy with the levels given in table for 5-6
Target 128 trading sessions.
Stop Loss 113.50

Running Calls (Long)


Buying Trading
Stock Close Buying date & time Stop loss Target
price period
GRASIM 2548.65 2443 31-Mar-11,03:08 pm 2500 2639 5 Days
BHARTIARTL 353.30 358 05-Apr-11,11:28 am 350 374 2 Days

Running Calls (Short)


Selling Trading
Stock Close Selling date & time Stop loss Target
price period
No Pending
Call

*Stop Loss is on intraday basis and we will keep changing the stop loss which would be mentioned here

Calls Closed
Position Entered Result Position Exit
Stocks Rate Date & Time % Profit / Loss Rate Date & Time
MARUTI 1273 08-Mar-11,09:30 am 4.48% 1216 15-Mar-11,09:23 am
TATASTEEL(Sell) 603 16-Mar-11,09:59 am -0.99% 609 22-Mar-11,10:05 am
DRREDDY(Sell) 1534 18-Mar-11,09:20 am -1.83% 1562 23-Mar-11,3:27 pm
ACC 994 10-Mar-11,02:18 pm 4.73% 1041 23-Mar-11,12:17 pm
INDUSINDBK 239 15-Mar-11,09:30 am 6.70% 255 23-Mar-11,12:35 pm
TCS(Sell) 1085 21-Mar-11,09:20 am 0.00% 1085 24-Mar-11,10:43 am
JPASSOCIAT 81 15-Mar-11,09:41 am 11.11% 90 25-Mar-11,9:22 am
NEYVELILIG 100 23-Mar-11,09:22 am 9.00% 109 30-Mar-11,9:32 am
GREAVESCOT 85.20 24-Mar-11,02:50 pm 6.80% 91 30-Mar-11,11:29 am

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