Pivotals: Reliance Industries (Rs 910.6)

RIL moved in the band between Rs 885 and Rs 940 before ending the week with a mild 1 per cent loss. There was yet another spinning top formation on the weekly chart denoting indecision. The stock has strong support in the zone between Rs 880 and Rs 920 that occurs at 50 per cent retracement of the up-move from March 2009 low. RIL has formed significant troughs in this zone in November 2009 and September 2010. Next medium-term support is at Rs 832 and investors can hold the stock as long as it trades above this level.

Resistances for the days ahead would be at Rs 925 and Rs 947. Traders can initiate fresh shorts on failure to cross the first resistances. Downward targets for short term are Rs 885, Rs 858 and Rs 832.

State Bank of India (Rs 2,584.6)

SBI took a sharp dive to the intra-week low of Rs 2,476 before closing more than Rs 100 higher on Friday. The stock has strong long-term support at Rs 2,500 and reversal from here will retain the positive outlook for this period. However, a close below this level will drag the stock down to Rs 2,200 or even Rs 1,900. Investors should therefore desist from making fresh purchases if the stock declines below Rs 2,500.



SBI will face resistance at Rs 2,640 and then at Rs 2,737 in the days ahead. Fresh longs are advised only on a close above the second resistance. Reversal below Rs 2,640 would be a cue for traders to initiate fresh short positions with the target of Rs 2,495 and Rs 2,460.

Tata Steel (Rs 595)

Tata Steel lost 7 per cent in last week's carnage to record the low at Rs 575 in line with our expectation. Immediate supports for the stock are at Rs 575 and Rs 550. Fresh shorts are recommended only on a close below the first support. Traders should, however, watch out for a rebound from the second support where the 200-day moving average is also positioned. Short-term resistances would be at Rs 645 and Rs 660.

Medium-term trend in the stock is sideways in the band between Rs 500 and Rs 650. The long-term outlook stays positive as long as the stock holds above Rs 450 and this can be the stop-loss for long-term investors.

Infosys Technologies (Rs 3,040.6)

Infosys attempted to move higher in the early part of the week but gave up those gains in the last two sessions to end the week on a flat note. Short-term trend in the stock remains weak and the stock can decline to the zone around Rs 2,950 if weakness persists. Presence of the 200-DMA at this level can cushion any sharp decline. Short-term resistances are at Rs 3,100 and Rs 3,150. Fresh long positions are advised only on a close above the second resistance.

Long-term trend in the stock continues to be up and this trend will be in jeopardy only on a close below Rs 2,500. However a close below Rs 2,950 can drag the stock down to the zone between Rs 2,600 and Rs 2,670 over the medium-term.





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