Pivotals: Reliance Industries (Rs 843.8)

> Reliance Industries (Rs 843.8)

RIL was choppy and formed a spinning top candlestick pattern in the weekly chart indicating indecisiveness. Short-term trend is down for the stock and this trend will be in place as long as the stock trades below Rs 880 levels. Key medium-term support for the stock is in the band between Rs 800 and Rs 810. Only a strong decline below this band will reinforce bearish momentum. Traders should tread with caution in the ensuing week.

The stock has been on a medium-term uptrend from its June 2012 low of Rs 673 levels. Investors with a medium-term perspective can consider retaining their holdings with stop-loss at Rs 797. A strong rally above Rs 880 will take the stock higher to Rs 900 and to Rs 940 in the medium-term.

> State Bank of India (Rs 2,261.6)

The stock gained 2.6 per cent with good volumes breaching key resistance band between Rs 2,200 and Rs 2,230 in the previous week. Short-term traders can continue holding their long positions with stop-loss at Rs 2,200 levels. Upside targets are Rs 2,300 and Rs 2,350. An emphatic move above Rs 2,350 will alter the stock’s short-term decline and pave the way for an up-move to Rs 2,450 in the medium-term.

On the other hand, strong decline below Rs 2,200 will strengthen the stock’s short-term downtrend and pull the stock down to Rs 2,075 levels. Subsequent important supports are positioned at Rs 2,000 and Rs 1,900.

> Infosys (Rs 2,883.7)

Infosys tumbled 3 per cent forming a bearish engulfing candlestick pattern in the weekly chart. The stock is reversing downwards from its key long-term resistance at Rs 3,000. It is currently hovering above important support at Rs 2,850 levels. A strong decline below this level will be the cue for initiating short positions with stop-loss at the same. Targets are Rs 2,800 and Rs 2,750 levels. Key immediate resistances are pegged at Rs 2,950 and Rs 3,000.

Medium-term trend continues to be up as long as the stock trades above Rs 2,550 and investors can consider holding the stock with stop-loss at Rs 2,500. We restate that a conclusive rally above Rs 3,000 will take the stock northwards to Rs 3,100 and then to Rs 3,200 in the medium-term.

> Tata Steel (Rs 354.3)

The stock is facing key resistance at Rs 365 ahead. Only a strong rally above this resistance can take the stock higher to Rs 380 in the short-term. Next significant resistance is at Rs 390. A decisive weekly close beyond Rs 390 is needed to alter the stock’s medium-term downtrend. Next resistances are at Rs 406 and Rs 420 levels.

Inability to rally above Rs 365 will pull the stock down to Rs 345 or even to Rs 335 in the short-term. Traders with a short-term perspective should be alert in the forthcoming week.

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