Reliance Industries (Rs 986.5)

As anticipated RIL declined last week and met our downward price target of Rs 960 on Thursday by recording a low of Rs 954. However, the stock bounced up recoupingsome of its early week losses and ended the week 1.5 per cent lower. It has been on a short-term downtrend from its January 5 peak and is trading well below its 50 and 200-day. Traders can initiate fresh long position only if the stock moves above Rs 1,000, a key resistance level with target of Rs 1,020 or Rs 1,030. Only a strong move above 1,040 will ease the downtrend and pave way for an up move to Rs 1,084. Failure to move above Rs 1,000 will result in the stock moving sideways between Rs 970 and Rs 1,000 in the short-term. It will continue to move sideways in the range between Rs 900 and Rs 1,200 in the medium-term.

State Bank of India (Rs 2,597.9)

Though the stock failed to make a strong close below Rs 2,500 last week, however, it took support at the level, remarking it as an important short-term base. In spite of choppy trading sessions initially, it gained almost 4 per cent for the week. Short-term trend will turn bullish only on a decisive move above Rs 2,700. The stock can then move higher to Rs 2,850 levels. Inability to surpass resistance level of Rs 2,700 will lead the stock to consolidate sideways for a while in the range between Rs 2,500 and Rs 2,700. Traders should therefore, tread cautiously in the short-term.

Medium-term trend is down for the stock since the November peak. Key medium-term support and resistance for the stock are at Rs 2,400 and Rs 3,000.

Tata Steel (Rs 629.6)

Tata Steel gained 1.3 per cent over the week, reversing higher from an intra-week low of Rs 612. It has been on a short-term down trend from its January 4 peak of Rs 713. This downtrend continues to be in place as long as the stock trades below Rs 665 levels. However, it is facing immediate resistance at Rs 640 level; a move above this level can lift the stock higher to Rs 665. Failure to cross the resistance will pull the stock down to Rs 612 once again or move it further down to Rs 590 in the short-term.

The stock continues to be in a medium-term trend from June 2010 trough. An emphatic decline below Rs 580 will be a threat.

Infosys Technologies (Rs 3,248.7)

Taking support from Rs 3,200 levels, the stock advanced by Rs 46 last week. It is moving sideways in the range between Rs 3,200 and Rs 3,350. Fresh short position is recommended only if the stock slips below the key support at Rs 3,200. Support below Rs 3,200 is at Rs 3,100. Resistance above Rs 3,350 is at Rs 3,400.

Significant medium-term support for the stock is in the band between Rs 2,980 and Rs 3,000. The stock has been on a medium-term trend since last August. Investors can consider holding the stock with stop-loss at Rs 2,980.

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