Pivotals: Reliance Industries (Rs 827.7)



RIL failed to move above Rs 900 last week, but instead it reversed lower from its intra-week high of Rs 893. It plunged 5 per cent for the week and is currently testing the lower boundary on the short-term sideways consolidation range between Rs 835 and Rs 900 with a negative bias.

Immediate key resistance for RIL is at Rs 854 and then at Rs 880, Rs 900. Failure to move above the first resistance will be cue for initiating fresh short position with stop-loss at Rs 855. Downward targets are Rs 820 and Rs 800.

The stock resumed its medium-term downtrend that has been on place since April 2011 high of Rs 1,065 levels. Strong fall below Rs 800 can pull the stock further down to Rs 770 levels over the ensuing weeks. On the other hand, an emphatic move above Rs 965 will negate the stock's downtrend.

State Bank of India (Rs 2,342)

After testing the significant medium-term resistance level of Rs 2,500, the stock tumbled Rs 152 or 6 per cent in the previous week making the resistance more significant. The stock has breached its immediate support at Rs 2,400 and is hovering above its next support level of Rs 2,300. It appears to have resumed its medium-term downtrend. Traders with short-term perspective can consider holding their positions with stop-loss at Rs 2,400. Fall below Rs 2,300 will drag the stock down to Rs 2,250 and then to Rs 2,175 levels. Significant resistances above Rs 2,400 are at Rs 2,450 and Rs 2,500.

Medium-term trend is down for SBI from its April peak of Rs 2,959. Only a decisive up-move above Rs 2,657 will mitigate bearish trend and pave way for a rally to Rs 2,700 in the medium-term.

Tata Steel (Rs 565.1)

Testing the resistance at Rs 595 on Tuesday, Tata Steel started to decline resuming its short-term downtrend and fell 3 per cent for the week. Short-term perspective traders can initiate fresh short position with stop-loss at Rs 576. Target for the stock are Rs 559 and Rs 550. However, a move above Rs 576 will entail encountering resistance at Rs 585 and then at Rs 595 which is a key level. Resistances above this level are at Rs 605 and Rs 615.

Intermediate and medium-term trends are down for the stock. However, it has a significant intermediate-term support at around Rs 550. A strong fall below this level will reinforce the downtrend and pull the stock down to Rs 530 and then to Rs 510 in the medium-term.

Infosys (Rs 2,766.8)

The stock retreated 2 per cent in the previous week. As long as the long-term support level of Rs 2,700 holds, traders with high-risk appetite can initiate long positions with stop-loss at these levels. The stock can move upwards to Rs 3,000 in the medium-term. However, strong decline below Rs 2,700 will pave way for a decline to Rs 2,600 and then Rs 2,500 in the months ahead.

The stock is moving sideways in the short-term between Rs 2,710 and Rs 2,840 band. Traders with short-term horizon should tread with caution as long as the stock remains hovering in the aforementioned band. Resistances for the week are at Rs 2,825, Rs 2,850 and Rs 2,900.

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