RIL was on the back-foot right from the outset and declined from Monday's peak of Rs 951 to close over 2 per cent lower. The stock has once again declined to the key medium-term support zone between Rs 880 and Rs 900.

This level has supported the stock since November 2009 and another reversal from this zone will keep the stock vacillating in the broad range between Rs 900 and Rs 1,150.

However, decline below this support band will deteriorate the medium-term picture opening the way for decline to Rs 825 or even Rs 740 in the ensuing months.

Fresh short positions are therefore recommended on a close below Rs 885.

Subsequent short-term targets are Rs 858 and Rs 822. Resistances for the week will be at Rs 933 and Rs 941. Failure to move beyond the second resistance will accentuate the bearish trend in the stock.

State Bank of India (Rs 2,322)

It was pandemonium on the SBI counter as the management decided to clean up their books of account shocking investors in to dumping the stock blindly. It has the dubious distinction of being among the top losers last week.

The stock broke through the key long-term support at Rs 2,500 last week. If we apply Fibonacci retracement targets to the up-move from March 2009 trough, we get the next supports at Rs 2,200 and Rs 1,890.

Since the February 2010 trough also occurs around Rs 1,880, investors can continue to hold the stock as long as it trades above this level.

Any short-term bounce can face resistance at Rs 2,450 and Rs 2,550 in the upcoming sessions.

Traders can initiate fresh short positions on failure to move beyond the first resistance.

If the stock totters early next week, downward targets would be at Rs 2,250 and Rs 2,140.

Tata Steel (Rs 578.3)

Tata Steel too declined with the rest of the pivotals but the recovery on Friday helped it close the week with a relatively shallow cut.

The stock has dipped below the key support band around Rs 580. The level that investors need to watch now is around Rs 550.

Medium-term view will turn negative on a close below this level, dragging the stock further to the next support zone between Rs 450 and Rs 500.

The stock will face resistance at Rs 590 and Rs 610 in the days ahead.

Traders can initiate fresh short positions on a failure to move above the first resistance. Downward targets for the short-term are at Rs 560 and Rs 550.

Infosys (Rs 2,850.5)

Infosys also broke below its key support at Rs 2,900 last week. Subsequent supports from a medium-term perspective are at Rs 2,770 and then Rs 2,580.

Failure to move above Rs 2,900 in the upcoming weeks will mean that the stock is heading towards these supports over the medium term.

The stock closed on a weak note on Friday.

The series of spinning top candles and doji formations in the daily chart implies that the stock is pausing before moving lower.

Short-term resistances are at Rs 3,000 and Rs 3,125. Short-term traders can initiate fresh short position on a downward reversal from either of these levels.

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