Pivotals: Reliance Industries (Rs 834.2)

The stock jumped Rs 40 or 5 per cent last week, breaching its 50-day moving average. It is also hovering well above its 200-day moving average. Traders with a short-term perspective can consider buying the stock on declines while maintaining stop-loss at Rs 815. Near-term targets are Rs 850 and Rs 860. Significant supports for the stock are pegged at Rs 800 and then at Rs 765.



Medium-term trend has been up for the stock from its May trough of Rs 673. A decisive fall below Rs 750 will mar this uptrend. Strong rally above Rs 860 will take the stock higher to Rs 880, Rs 900 and Rs 935 levels in the forthcoming months.



State Bank of India (Rs 2,310.8)



SBI zoomed more than 6 per cent accompanied by good volumes, breaching its key resistance in the previous week. The stock is trading well above its 50- and 200-day moving averages. However, it is currently testing significant long-term resistance in the range between Rs 2,300 and Rs 2,350. Only a strong breakthrough of this range will take the stock higher to Rs 2,500 in the medium-term. Traders can consider holding their long positions with stop-loss at Rs 2,245.



An up-move above Rs 2,350 can push the stock higher to Rs 2,400 and to Rs 2,450 in the short-term. But failure to rally above Rs 2,350 can lead to sideways consolidation. Nevertheless, a decline below Rs 2,190 will mitigate the stock’s short-term uptrend and pull it lower to Rs 2,150 or 2,100 in the short-term.



Infosys (Rs 2,319.7)



Last week, Infosys plunged almost 5 per cent, reversing down from a key resistance level at Rs 2,450. The stock has its 200-day moving average hovering between Rs 2,450 and Rs 2,512, making this zone an important resistance. On the other hand, the stock is hovering above key support band between Rs 2,280 and Rs 2,310. The stock’s daily indicators are on the brink of entering the bearish zone from the neutral region. Traders with a short-term perspective can initiate fresh short positions only if the stock declines below this support band with stop-loss at Rs 2,310. Downside targets are Rs 2,230 and Rs 2,185. Next key support is at Rs 2,100.



A decisive rally beyond Rs 2,512 will take the stock higher to Rs 2,650 and to Rs 2,700 in the medium-term.



Tata Steel (Rs 394.9)



The stock rose 2.5 per cent in the previous week. But it encountered resistance at around Rs 400. Traders can initiate fresh long position only if the stock breaches Rs 400 decisively with same as stop-loss. In that scenario, the stock can rally to Rs 410 and then to Rs 420 in the weeks ahead. Subsequent key resistance is in the band between Rs 435 and Rs 440. The stock has immediate key support at around Rs 383. A fall below this level will pull the stock down to Rs 374.



However, the stock has important medium-term support zone between Rs 340 and Rs 360. Investors with a greater penchant for risk can accumulate the stock in this zone with stop at Rs 330.







Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get





Related

This article is closed for comments.
Please Email the Editor