Pivotals - Reliance Industries (Rs 822.9)



Losing its bullish momentum, the stock fell almost 2 per cent in the week ago. It is moving sideways with negative bias. However, only a strong decline below its key immediate support band at Rs 800 to Rs 810 will determine that its short-term trend turning down.

In that scenario, the stock can decline to Rs 780 or even to Rs 760 in the forthcoming weeks. Short-term traders should tread with caution. On the upside, a decisive rally above Rs 840 will reinforce bullishness and push the stock higher to Rs 850 and Rs 860 levels. The stock’s medium-term uptrend will remain in force as long as it trades above Rs 750.

Investors with a medium-term perspective can continue holding the stock with stop-loss at Rs 740. If the stock manages to stay above Rs 750, an up move to Rs 880 or Rs 900 is possible in the medium-term.

State Bank of India (Rs 2,333.7)

SBI was volatile and formed a spinning top candlestick pattern in the weekly chart indicating indecision. The stock continues testing its significant long-term resistance in the range between Rs 2,300 and Rs 2,350.

We reaffirm that only an emphatic breakthrough of this resistance can accelerate the stock higher to Rs 2,500 levels in the medium-term. The stock’s short-term trend remains up as long as its key support at Rs 2,190 holds. Short-term term traders should tread with caution in the upcoming truncated and derivative expiry week. Immediate significant supports are at Rs 2,260 and Rs 2,220. A fall below Rs 2,190 will pull the stock down to Rs 2,150 or 2,100. Near-term resistances for the stock are at Rs 2,400 and Rs 2,450.

Infosys (Rs 2,292.5)

Infosys was wavering last week and is still testing its key support in the band between Rs 2,280 and Rs 2,310. Fresh short positions can be initiated only if the stock conclusively falls below this support band with stop-loss at Rs 2,310 levels. Targets will be Rs 2,230 and Rs 2,185 levels. Important support below Rs 2,185 is at Rs 2,100.

The stock has key resistances at Rs 2,400, Rs 2,450 and Rs 2,512 levels. Only a strong rally above Rs 2,512 would reinforce optimism and push the stock to Rs 2,650 and Rs 2,700 in the medium-term.

Tata Steel (Rs 429.5)

The stock jumped 8 per cent accompanied by good volumes last week, decisively breaking through its important resistance at Rs 400. In line with our view, the stock surpassed the near-term target of Rs 420. Short-term traders can consider taking profits off the table at this juncture as the stock is testing next key resistance band between Rs 435 and Rs 440. Strong move above this band will indicate a medium-term uptrend and the stock can trend higher to Rs 465 or Rs 475 levels.

A downward reversal from the resistance band can pull the stock down to Rs 420 and then to Rs 405-400 in the near-term. Subsequent supports are positioned at Rs 383 and Rs 374.

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