The stock was volatile during the previous week. After testing Rs 840, the stock recovered and narrowed its weekly loss to Rs 8. From mid-November 2013, RIL has moved in a sideways range between Rs 840 and Rs 885. As long as the stock trades within this range, short-term traders should tread with caution. The indicators and oscillators in the daily chart are featuring in the neutral region. An emphatic fall below Rs 840, can be seen as an opportunity to initiate fresh short position with a stop loss at the same level . The downside targets are Rs 820 and Rs 800.

To reinforce bullish momentum, the stock needs to breach Rs 885 decisively. Key resistances above this level are pegged at Rs 910 and Rs 930. Since August 2013, the stock has been in a medium-term sideways trend, moving within the broad range of Rs 770 and Rs 930.

State Bank of India (Rs 1,608.8)

SBI plunged 6 per cent with good volumes last week. The short-term sideways trend in the stock has now turned bearish. The stock is trading well below its 50- and 200-day moving average. The relative strength index in the daily chart is featuring in the bearish zone signalling bearish momentum. Other indicators in the daily chart are also featuring in the negative territory reinforcing the downtrend. The indicators in the weekly chart are also showing signs of weakness. However, the stock is testing an important support level at Rs 1600. A decisive breach of this level is needed to initiate fresh short position. The stock can then trend lower to test the next support at Rs 1500.

A conclusive fall below Rs 1500 will strengthen the stock’s medium-term downtrend which has been in place from its May 2013 peak of Rs 2,469. Key support below Rs 1500 is at Rs 1409.

On the other hand, a bounce back from the support at Rs 1600 can witness a minor pull-back rally to Rs 1650 or Rs 1700. Significant resistances above Rs 1700 are placed at Rs 1810 and Rs 1920.

Infosys (Rs 3,548.9)

The stock was extremely choppy and closed Rs 16.5 lower for the week, following 2.8 per cent gains on Friday. However, the stock is trading just below its important resistance at Rs 3600. Short term traders can take profits off the table if it fails to move past this resistance level. The stock can continue to move sideways in the band between Rs 3450 and Rs 3600. A conclusive break-out of this range on the upside, can take the stock higher to Rs 3,750 and to Rs 4,000 in the medium term.

On the other hand, a decisive fall below Rs 3450 can drag the stock down to Rs 3350 and Rs 3250 in the short term. Supports below this level are at 3,150 and Rs 3,000.

The medium-term trend is up for the stock. Medium-term investors can consider booking partial profits if the stock fails to move above Rs 3600. The medium-term stop-loss is at Rs 3000.

Tata Steel (Rs 384.3)

Tata Steel extended its loss by falling 6.8 per cent during the previous week. The stock has breached its 50-day moving average. The indicators in the daily chart are now featuring in the bearish zone signalling a bearish momentum. The stock is just above its key support at Rs 380. Short-term trend deciding level is at Rs 370, and short-term traders need to tread with caution in the ensuing week. A decisive fall below Rs 370 will mar the stock’s short-term uptrend and take the stock lower to Rs 360 and then to Rs 350. Next supports are at Rs 333 and Rs 320.

To reinforce a bullish momentum, the stock needs to rally above Rs 400. Important resistances above this level are at Rs 410 and Rs 423. As long as the stock trades above Rs 320, the medium-term trend will remain up. Investors with medium-term horizon can stay invested in the stock with a stop-loss at Rs 320.

Related Topics
comment COMMENT NOW