Portfolio

Pivotals: Reliance (Rs 807.8)

Yoganand D. | Updated on November 03, 2012 Published on November 03, 2012


The stock continued its bout of volatility, vacillating between Rs 790 and Rs 820. Short-term traders can initiate fresh short positions only if the stock declines below Rs 790 with stop-loss at Rs 800. Targets are Rs 778 and Rs 765.

On the other hand, a strong rally above Rs 830 can take the stock higher to Rs 848 and then to Rs 881 in the upcoming weeks.

Medium-term trend has been up for the stock from its June trough at Rs 673 levels. However, the stock will face significant resistance at Rs 870. As long as the stock trades below this level, its medium-term outlook will remain negative.

A strong breakthrough of Rs 870 will strength the stock’s medium-term uptrend and take it higher to Rs 936.

Investors with a greater penchant for risk can buy the stock in the band between Rs 700 and Rs 750 with stop at Rs 660.

Infosys (Rs 2,389.1)

The stock reversed higher from its key short-term support at Rs 2,310 and gained 2.6 per cent for the week. Nevertheless, the stock is currently testing important resistance at Rs 2,400. Next resistance is at Rs 2,450. The stock needs to rally above Rs 2,450 to imply that the short-term outlook is turning positive.

Upside targets are Rs 2,524 and Rs 2,649.

But an inability to rally above Rs 2,450 will confine the stock to trading between Rs 2,310 and Rs 2,450 in the ensuing weeks. A downward move below Rs 2,310 can drag the stock lower to Rs 2,189, Rs 2,101 and Rs 2,030.

A conclusive rally above Rs 2,641 is required to allow the stock move higher to Rs 2,800 or to Rs 2,970 in the medium-term.

State Bank of India (Rs 2,152.5)

The stock has been wavering in the range between Rs 1,820 and Rs 2,500 since mid-January this year. It faces important medium-term resistance in the band between Rs 2,320 and Rs 2,500.

The stock has significant long-term base in the band between Rs 1,600 and Rs 1,800.

Short-term trend has been down for the stock from its October peak of Rs 2,363.

As long as the stock trades below Rs 2,230 levels its short-term outlook will be negative. Traders can make use of rallies to short the stock while maintaining stop-loss at Rs 2,200 levels.

Downside targets are Rs 2,100 and Rs 2,026. Immediate resistances are at Rs 2,290 and Rs 2,360.

Tata Steel (Rs 401.6)

The stock is in a short-term downtrend and is currently testing its key support at Rs 395. Strong dive below this level will reinforce bearish momentum and pull the stock down to Rs 385 and Rs 375 levels.

In that scenario, traders can initiate fresh short positions with stop-loss at Rs 400.

The stock has to rally above Rs 411 to alter its downtrend and climb higher to Rs 426 or Rs 432. Subsequent key medium-term resistances are at Rs 450 and Rs 475 levels.

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