Pivotals - Reliance (Rs 799)



RIL was extremely volatile last week, whipsawing between Rs 790 and Rs 820. The stock, however, closed near the intra-week low implying that the short-term trend continues to be down. Traders can initiate fresh shorts in rallies with stop at Rs 830. Downward targets are Rs 778 and Rs 765.

But a move above Rs 830 will take the stock up to Rs 848 and Rs 881.

The stock is in a medium-term uptrend since the June low at Rs 673. But this rally faces a first serious hurdle at Rs 870. The stock is reversing after testing this level in September. Medium-term outlook will stay negative as long as the stock trades below this resistance. But a move beyond will take RIL to Rs 936.

Investors with a greater penchant for risk can buy the stock in the band between Rs 700 and Rs 750 with stop at Rs 660.

Infosys (Rs 2,328.8)

Infosys trudged lower last week to end the week 59 points down. The stock has now moved close to its key short-term support at Rs 2,310.

Traders can go short on strong break below this level with stop-loss at Rs 2,450. Downward targets are Rs 2,189, Rs 2,101 and Rs 2,030.

Short-term outlook will turn positive on a move above Rs 2,450. Subsequent targets are Rs 2,524 and Rs 2,649.

Though the medium-term trend is positive since the July 26 trough, investors need to stay cautious since the stock is reversing lower from key medium-term hurdle at Rs 2,641. This level needs to be crossed to enable the stock to proceed higher to Rs 2,800 or Rs 2,970.

State Bank of India (Rs 2,173.2)

This stock is stuck in a band between Rs 1,820 and Rs 2,500 since the beginning of this year. The stock faces key medium term resistance zone between Rs 2,320 and Rs 2,500. As long as the stock is unable to move above this zone, it is likely to vacillate in the above mentioned trading band. SBI has very significant long-term support between Rs 1,600 and Rs 1,800.

The short-term trend has reversed lower since the Rs 2,362 peak. But the stock is currently halting at its short term support at Rs 2,156. Fresh shorts are advised only on decline below this level. Subsequent targets are Rs 2,093 and Rs 2,026. Short-term resistances will be at Rs 2,290 and Rs 2,360.

Tata Steel (Rs 399.5)

Tata Steel dived sharply on Thursday but recovered thereafter to end the week with only mild losses. The short-term trend is down but the stock is halting at the key support at Rs 395.

Recovery from here will mean that the medium-term outlook stays positive for the stock and it can move on to Rs 426 and then Rs 475 in the coming months.

Short-term traders can hold their long positions as long as the stock trades above Rs 395. Near term resistances will be at Rs 408 and Rs 415. Supports on decline below Rs 395 will be at Rs 387 and Rs 378.

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