Technical Analysis

Pivotals: Reliance Industries (Rs 837.7)

Yoganand D. | Updated on November 15, 2017 Published on February 04, 2012

RIL climbed 2.5 per cent in line with our expectation the last week. The stock currently faces significant resistance in the zone between Rs 845 and Rs 850. Hence, traders should tread with caution as long as the stock traders below this resistance zone. Strong breakthrough of Rs 850 is required to lift the stock higher to Rs 880 and then to Rs 900 in the forthcoming weeks. Important medium-term resistance above Rs 900 is pegged at Rs 950.

But an inability to surpass Rs 850 will pull the stock down to Rs 817 and Rs 795. Decisive fall below Rs 760 will mar the stock's current short-term uptrend and pull it down to Rs 730. Key medium-term support for the stock is at Rs 700.

Infosys (Rs 2,779.9)

Infosys has been on a near-term uptrend since mid-January. It rose 2 per cent, conclusively breaching its 200-day moving average last week. Traders with a short-term perspective can prolong holding their long positions with stop-loss at Rs 2,740. Upside targets for the stock are Rs 2,812 and Rs 2,864. Failure to move above the first target will be the cue for taking the profits off the table.

On the other hand, decline below the immediate support at Rs 2,695 can drag the stock down to Rs 2,660 and to Rs 2,600. Key supports below Rs 2,600 are at Rs 2,585 and Rs 2,555.

The stock continues to be in a medium-term uptrend. Investors can stay invested in the stock with stop-loss at Rs 2,467. Conclusive rally above Rs 2,900 will reinforce bullish momentum and lift the stock to Rs 3,000 in the medium-term.

State Bank of India (Rs 2,103.1)

In the midst of volatility, SBI advanced 3 per cent in the past week. The stock is currently testing key resistance at Rs 2,100. Short-term traders should tread with caution in the ensuing week. Only a strong move above Rs 2,140 will take the stock northwards to Rs 2,190, Rs 2,220 and to Rs 2,270 in the medium-term.

A downward reversal from the current resistance can pull the stock down to Rs 2,030 and Rs 1,990. Conclusive fall below Rs 1,830 will mitigate the stock's present short-term uptrend and drag it down to Rs 1,765 levels. Key support below Rs 1,765 is at Rs 1,715.

Tata Steel (Rs 467.2)

The stock was choppy in the previous week but managed to advance almost 2 per cent. It achieved our first target of Rs 478 and started to decline. The stock's short-term uptrend that commenced from its 52-week low of Rs 332, marked on January 2, is losing strength. Further, the daily volumes are declining and the daily relative strength index is displaying negative divergence signalling a potential trend reversal.

But only a fall below Rs 405 will signify that the stock's uptrend has mitigated. The stock can decline to Rs 390 or to Rs 365 in the weeks ahead. Immediate supports for the stock are positioned at Rs 443 and Rs 420.

Conversely, a move above Rs 485 will lift the stock higher to Rs 505. Resistances above Rs 504 are at Rs 520 and Rs 544.

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