Pivotals - Reliance Industries (Rs 809.5)

RIL tumbled 6 per cent breaking through the lower boundary of its sideways consolidation last week. With this fall, the stock’s short-term downtrend has strengthened. The stock has been in a short-term downtrend from its January peak of Rs 954 levels. However, the stock is currently testing important support band between Rs 800 and Rs 810. The stock can spend some time in this zone before resuming its downtrend in the near future. Fresh short positions can be initiated only if RIL declines below the aforementioned support band with stop-loss at the same. The stock can decline to Rs780 initially and then to Rs 760 in the short-term. Important support below Rs 760 is at Rs 740.

Key immediate resistance is at Rs 830 and Rs 850. The stock needs to make a strong rally above Rs 880 to alter its short-term downtrend and take it higher to Rs 900 and Rs 940 in the medium-term.

State Bank of India (Rs 2,089.3)

The stock was hovering above the key support band between Rs 2,200 and Rs 2,230 until the Budget day. In that session, the stock plunged almost 6 per cent, conclusively breaking the key support band. The daily relative strength index is featuring in the bearish zone and weekly RSI is on the brink of entering this zone from the neutral region.

The stock is hovering at key medium-term trend deciding levels. Strong decline below Rs 2,075 will mar the stock’s medium-term uptrend and reinforce bearish momentum. In that scenario, the stock can decline to Rs 2,000 or even to Rs 1,900 levels in the medium-term. Next important key support is at Rs 1,830. Significant resistance is at Rs 2,200 and next is at Rs 2,300.

Infosys (Rs 2,908.4)

Infosys decisively broke out of the upper boundary at Rs 2,835 by gaining 2.5 per cent in the week ago. In line with our expectation, the stock rallied and reached our price target of Rs 2,865 and Rs 2,900. Immediate resistance for the stock is at Rs 3,000.

Since its July 2012 low of Rs 2,101, the stock has been in a medium-term uptrend. This uptrend will remain in place as long as the stock trades above Rs 2,500 levels. Key supports below this level are at Rs 2,400 and Rs 2,300. A strong rally above Rs 3,000 will take the stock northwards to Rs 3,100 or to Rs 3,200 in the medium-term. Investors with a medium-term perspective can stay invested with stop-loss at Rs 2,600 levels.

Tata Steel (Rs 341.6)

Last week, the stock nose-dived 6 per cent, breaking through the key support at Rs 360 in line with our view. Nevertheless, the stock is testing important long-term support at Rs 340 levels. Short-term trend has been down for the stock from its January 2013 peak of Rs 448. It is trading well below its 50- and 200-day moving averages. Its daily indicators are hovering in the oversold territory indicating a potential corrective up move.

As the stock is testing key support and indicators are featuring in the oversold levels, short-term traders should tread with caution in the upcoming week. Key support below Rs 340 is at Rs 335. Important resistances for the week ahead are positioned at Rs 356, Rs 365 and then Rs 380. Only a strong rally above Rs 400 will alter the short-term downtrend and take the stock higher to Rs 420 levels.

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