Technical Analysis

Pivotals: Reliance Industries (Rs 714.7)

Yoganand D. | Updated on November 15, 2017 Published on January 07, 2012

The stock advanced 3 per cent in the previous week after testing the support Rs 700. Nevertheless, short-term trend is down for the stock. Inability to move above Rs 740 levels will pull the stock down and will retest the key support level Rs 700 once again. Hence, fresh long positions are recommended only if the stock decisively climbs above Rs 740 levels. Targets are Rs 765 and Rs 790. On the other hand, strong tumble below Rs 700 will pave way for a decline to Rs 670.

Medium-term trend remains down for the stock. An emphatic fall below the key support at Rs 700 will strengthen the stock's downtrend and pull it down to Rs 650 in the medium-term.

Infosys (Rs 2,837.5)

The stock gained 2.6 per cent accompanied by good volume in the last week. It has managed to move above the 200-day moving average. However, the stock is facing key resistance at Rs 2,900. Traders should tread with caution as long as the stock trades below Rs 2,900. Fresh long positions can be initiated on a breakthrough of this resistance. Upside targets are Rs 2,950 and Rs 3,000. Inability to breach the resistance will pull the stock down to Rs 2,750 level. Next support for the stock is at Rs 2,650.

The stock has been on a medium-term uptrend since last August. This uptrend remains in force as long as the stock trades above Rs 2,550 levels. Conclusive rally above Rs 3,000 will reinforce the bullish momentum and take the stock higher to Rs 3,250 and Rs 3,500 in the medium-term.

State Bank of India (Rs 1,669.7)

SBI has been moving sideways between Rs 1,576 and Rs 1,720 over the past three weeks and is currently testing the upper boundary of this range. Strong move above Rs 1,720 will push the stock higher to Rs 1,810 and to Rs 1,890 or Rs 1,936. But, reversal downwards from the upper boundary will confine the stock to hovering in the aforementioned sideways range in the week ahead. Moreover, short-term trend remains down for the stock as long as it trades below Rs 1,810 levels.

The stock continues to be in a medium-term downtrend. Strong move above Rs 2,050 will reverse this downtrend. Conversely, a drop below Rs 1,576 will reinforce the stock's medium-term downtrend and can pull the stock down to Rs 1,510.

Tata Steel (Rs 362.8)

The stock snapped its four week losing streak by surging 8 per cent last week. The volume was good during this up move. Traders with a high-risk profile can initiate fresh long positions with stop-loss at Rs 346. Short-term targets are Rs 380 and Rs 395. Failure to move above the first target will be indication for taking profits off the table. Though the stock is reversing, its short-term trend remains down as long as it trades below Rs 395 levels.

Medium-term trend is down for Tata Steel. Strong move above Rs 440 is required to alter the stock's downtrend. Immediate key supports for the stock are pegged at Rs 335 and Rs 300.

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