Technical Analysis

Pivotals: Reliance Industries (Rs 744)

Yoganand D. | Updated on March 09, 2018 Published on March 24, 2012




The stock declined Rs 28 or 3.6 per cent in the previous week breaching its key support range between Rs 750 and Rs 760. Its short-term trend remains down since its February 2012 peak of Rs 864.



Traders with short-term horizon can consider initiating fresh short position with tight stop-loss at Rs 758. The downside targets for the stock are Rs 723 and Rs 700.



The stock has a significant long-term support at Rs 700; an emphatic tumble below this level will reinforce its medium-term downtrend and may pull the stock down to Rs 674 and to Rs 650.



Conversely, a jump above Rs 770 will take the stock higher to Rs 783 and to Rs 800.



Strong move beyond Rs 810 is required to alter the downtrend and take the stock higher to Rs 830 in the weeks head.



Infosys (Rs 2,870)



The stock continued its choppy movement between Rs 2,810 and Rs 3,000 last week.



Only a strong decline below Rs 2,810 will be cue for short-term traders to initiate fresh short positions.



In that case, the stock can decline to Rs 2,744 and Rs 2,700. Subsequentsupport is positioned at Rs 2,600.



Decline below this support will mar the stock's medium-term up move and pull it down to Rs 2,450.



On the other hand, decisive rally above Rs 3,000 can accelerate the stock's move higher to Rs 3,300 with minor pause at around Rs 3,100 and Rs 3,200 levels. Immediate resistance is at Rs 2,935.



State Bank of India (Rs 2,165.2)



SBI slumped 2.8 per cent in last week in line with our expectation.



It is now testing important medium-term support level at Rs 2,130.



A strong dive below Rs 2,130 will strengthen the stock's short-term downtrend that has been in place since its February peak of Rs 2,474. Traders with short-term perspective can consider initiating fresh short positions only if the stock declines below Rs 2,130. Targets are Rs 2,070, Rs 2,000 and Rs 1,936.



As long as Rs 1,936 holds, the stock's medium-term uptrend that has been in place from December 2011 low, will continue to be in place.



But, a move above Rs 2,270 will push the stock higher to Rs 2,350 levels in the near-term. Next significant resistance is at Rs 2,450.



Tata Steel (Rs 449)



After testing significant resistance at Rs 470 on March 21, the stock declined.



Failure to rally above this level in the approaching week will pull the stock down to Rs 440 levels.



Subsequent supports are positioned at Rs 420, Rs 400 and Rs 380.



Strong rally above Rs 470 can take the stock higher to Rs 490 and Rs 500 range. Next resistances are at Rs 520 and Rs 540.



The stock has been on a medium-term sideways consolidation between Rs 420 and Rs 500. An emphatic breakout on either direction will portray the stock's medium-term direction.

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