Technical Analysis

Pivotals: Reliance Industries (Rs 737.4)

Lokeshwarri S.K. | Updated on June 30, 2012 Published on June 30, 2012

Reliance Industries gained Rs 26 last week to close near the upper end of its near-term trading range.

The stock has been consolidating in a narrow band between Rs 700 and Rs 742 over the last three weeks.

Traders can hold their long positions with stop at Rs 698.

The stock could move higher to Rs 772 or Rs 792 on a strong upward break-out early next week.

The stock faces key medium-term resistance at Rs 868. Unless a weekly close above this level is recorded, volatility is expected to persist.

It also needs to be borne in mind that the stock has key long-term support around Rs 700. The brave-hearted could accumulate this stock at current levels with stop at Rs 650.

Infosys (Rs 2,502.5)

Infosys has key long-term supports at Rs 2,300 and Rs 2,000. The stock is attempting to form a base around the first support since August 2011.

Long-term investors can consider buying the stock at current levels with stop at Rs 2,140.

The stock will, however, face long-term resistance around Rs 3,000.

Inability to clear this level will keep it in the band between Rs 2,100 and Rs 3,000 over the medium-term.

The stock is currently in a nascent short-term uptrend. This move will face resistance at Rs 2,600 and then at Rs 2,700 in the upcoming weeks.

Short-term supports will be at Rs 2,400, Rs 2,330 and then Rs 2,200.

State Bank of India (Rs 2,159.1)

SBI was very volatile last week and closed with a doji pattern in the weekly candlestick chart.

The stock has short-term resistance around Rs 2,230 and it has been moving just below this hurdle over the last three weeks.

Fresh long positions are suggested only on strong move beyond this level.

Subsequent targets are Rs 2,326 and then Rs 2,494.

Traders can continue to buy in declines as long as the stock trades above Rs 2,030. Next support is at Rs 1,977. Medium-term trend in the stock is down since the November 2010 peak.

The outlook for the stock stays murky as long as it trades below Rs 2,200. Strong move above this level is required to take the stock up to Rs 2,535 or Rs 2,779.

Tata Steel (Rs 441.3)

Tata Steel had a strong week, gaining over 5 per cent. This uptrend will face resistance at Rs 460.

Investors with short-term perspective can exit the stock on inability to move beyond this level.

Target on a strong close above this level is Rs 500. Short-term supports are at Rs 400 and Rs 390.

Key medium-term resistance for the stock is at Rs 490.

This level needs to be crossed to take the stock further to Rs 535 and Rs 583.

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