Portfolio

Pivotals: Reliance Industries (Rs 993.1)

Yoganand D. | Updated on March 19, 2011 Published on March 19, 2011


RIL broke out of the sideways range and reached our target zone between Rs 1,040-1,050 on Tuesday. However, by experiencing selling pressure in this resistance zone, it did a volte-face and tumbled nearly 4 per cent on Friday. It gave away all its profits made last Monday and Tuesday and finished the week approximately at the same level it ended the week before.

Short-term uptrend that is in place from February 2010 low of Rs 885 is currently under threat as the stock is testing key support at Rs 1,000. Traders with short-term perspective can initiate fresh short position if the stock declines below Rs 980 levels with tight stop-loss. Downward targets are Rs 960, Rs 940 and Rs 920 levels. Key support below Rs 920 is at Rs 880. Significant resistances over the short-term are at Rs 1,016, Rs 1,050 and Rs 1,080. The stock continues to move sideways in the range between Rs 880 and Rs 1,160 in the medium-term.

State Bank of India (Rs 2,590.6)

SBI was volatile and settled by climbing Rs 19 last week. The stock has been moving sideways in the band between Rs 2,500 and Rs 2,750 for the past three weeks. Short-term traders can initiate fresh short position while maintaining stop-loss at Rs 2,650. Targets are Rs 2,550, Rs 2,530 and Rs 2,500. Resistances ahead are positioned at Rs 2,700, Rs 2,755 and Rs 2,800.

We retain the opinion that a strong fall below its key support level of Rs 2,500 will strengthen the stock's medium-term downtrend which is in place since last November. In that case, it can drag the stock down to Rs 2,200 or even to Rs 1,900 levels over the medium-term.

Tata Steel (Rs 596.3)

After testing its lower boundary (Rs 590) and its 200-day moving average around Rs 586, the stock bounced during the initial part of the week. It managed to trade above Rs 590 and finished the week with a 2.5 per cent gain. However, the near-term outlook remains bleak for the stock. An emphatic dive below Rs 585 will signal reinforcement of the downtrend. Traders can initiate fresh short position only if the stock slips below this level. The stock can decline to Rs 570 and then to Rs 550. Key support below these levels is at Rs 520. Inability to decline below Rs 585 will imply that the stock can move sideways for a few more weeks. Important resistances are pegged at Rs 610 and Rs 630.

ince January, the stock has been on a medium-term downtrend. A conclusive move above Rs 660 is required to negate the downtrend.

Infosys Technologies (Rs 2,941.5)

Infosys plunged 3.7 per cent last week, decisively breaching its significant medium-term support at Rs 3,000 and 200-day moving average around the same level. Short-term outlook has turned bearish for the stock. Traders can initiate short positions in rallies while maintaining stop-loss at Rs 3,000 levels. Targets are Rs 2,900 and then Rs 2,850.

The stock appears to have resumed its medium-term downtrend, which is in place from its January peak of Rs 3,493 levels. It can decline to Rs 2,800, a key support level, in the medium-term. Important resistance are at 3,000, 3,100 and 3,160 levels.



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