Pivotals: Reliance Industries (Rs 883.8)

Last week too, RIL traded in a narrow range between Rs 850 and Rs 900, initially testing the resistance at upper boundary and later bouncing up from Rs 850 on Friday. It added only Rs 4.3 last week. The stock is currently facing resistance at around Rs 900, a key resistance as well as its 200-day moving averages. Short-term traders can consider holding their long positions with stop-loss at Rs 847. Emphatic break through of Rs 900 will take the stock higher to Rs 920 or even to Rs 970 in the weeks ahead.

On the other hand, downward breach of Rs 847 can drag the stock lower to Rs 830. Subsequent supports are at Rs 809 and Rs 787. Medium-term trend in the stock is still down. Only a strong close above Rs 970 will reverse this trend. The stock has significant long-term support in the zone between Rs 700 and Rs 750.

State Bank of India (Rs 1,797.6)

Following the announcement of its September quarter results on November 9, the stock plunged steeply, breaching its 21- and 50-day moving averages. The stock lost 8.5 per cent in the previous week and is once again testing its long-term support band between Rs 1,700 and Rs 1,900. Short-term trend remains down as long as the stock trades below Rs 1,910 levels. Traders with short-term perspective can initiate fresh short position if the stock fails to move above Rs 1,860 while maintaining stop-loss at this level. The stock can decline and test support at Rs 1,710. However, strong move above Rs 1900 will lift the stock higher to Rs 2,000 and then to Rs 2,106. Medium-term trend continues to be down for the stock since this April peak of Rs 2,959. But the presence of long-term support in the band between Rs 1,700 and Rs 1,900 can cushion the stock in the ensuing sessions. Medium-term investors should trade with caution at current juncture. Conclusive breach of this support band can reinforce the downtrend and pull the stock down to Rs 1,715. Key resistance is in the range between Rs 2,500 and Rs 2,530.

Tata Steel (Rs 430)

The stock tumbled below its immediate support range between Rs 450 and Rs 454 and declined sharply and is testing next key support at around Rs 430. It has nosedived 8 per cent in the previous week. However, fresh long position is recommended only on a strong jump above the stocks significant resistance level of Rs 450. In that case the stock can climb higher to Rs 470 and Rs 490. Inability to move above Rs 450 will pull the stock down to Rs 419, Rs 410 and then to Rs 400. Therefore short-term perspective traders should tread with caution. The medium-term trend is down for the stock. Strong weekly close below the significant support zone between Rs 390 and Rs 400 will pave way for a decline to Rs 353 in the medium-term. However, a decisive break through of resistance at Rs 515 will alter the downtrend and take the stock upwards to Rs 553 or Rs 592.

Infosys (Rs 2,775.6)

Infosys slipped 1.9 per cent during last week. After testing its immediate support at Rs 2,730, it managed to rebound on Friday. Key supports for the stock are at Rs 2,730, Rs 2,700 and Rs 2,660. A reversal from Rs 2,700 will be cue for initiating long positions. Upside targets are Rs 2,850 and Rs 2,900. Short-term uptrend will be in threat if the stock dives below Rs 2,660 and it can decline to Rs 2,550 or to Rs 2,450 levels. The stock has significant medium-term resistance at around Rs 3,000, only a strong penetration of this level will lift the stock higher to Rs 3,500 in the upcoming months.

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

What You'll Get


This article is closed for comments.
Please Email the Editor