RIL fell almost 2 per cent the week ago. Its near-term stance is bearish and it is hovering below its 21- and 50-day moving averages. But the stock is testing key support at Rs 800. A strong decline below this level will pull the stock down to Rs 780 and then to Rs 760 in the short-term. Traders with a short-term perspective can initiate fresh short positions in that scenario with stop-loss at Rs 800. Important support below Rs 760 is at Rs 740.

Key short-term resistances are positioned at Rs 823 and Rs 832. A decisive up-move above Rs 832 will take the stock higher to Rs 860. This resistance needs to be cleared emphatically for an up move to Rs 880 or Rs 900 in the medium-term.

Infosys (Rs 2,383.3)

The stock was volatile and moved sideways in a narrow range in the previous week. As long as the stock trades below Rs 2,500 levels, its near-term stance remains bearish. The stock is hovering well below its 50 and 200-day moving averages. It is currently testing key support at Rs 2,375 levels. Conclusive fall below this level will pull the stock down to Rs 2,270 and Rs 2,240. Traders can consider initiating fresh short positions if the stock declines with Rs 2,375 as stop-loss. Next support for the stock is at Rs 2200 and Rs 2100.

Conversely, only a strong rally above Rs 2500 will reverse the stock’s near-term downtrend and push it higher to Rs 2600 or Rs 2650 levels.

State Bank of India (Rs 2,256.6)

Last week, the stock moved sideways just above its key support level at Rs 2200. A decisive decline below this support will pave the way for a decline to Rs 2100 or Rs 2060 in the near-term. Further fall below Rs 2060 will mar the stock’s medium-term uptrend that has been in place from this August low around Rs 1816. Key supports below Rs 2060 are at Rs 1940 and Rs 1830 levels.

On the other hand, a decisive up move beyond Rs 2350 will strengthen the stock’s medium-term uptrend and lift the stock higher to Rs 2400 and Rs 2460.

Tata Steel (Rs 407.1)

The stock tumbled 3.2 per cent in the past week. It failed to rally beyond key resistance and 200-day moving average at around Rs 420 and is losing its bullish momentum. A strong decline below Rs 400 can pull the stock down to Rs 393. As long as the stock trades above Rs 384, its medium-term uptrend will stay in place. Important supports below Rs 384 are at Rs 370 and Rs 358.

An upward reversal from Rs 400 will take the stock higher to Rs 420. A breakthrough of Rs 420 will take the stock northwards to Rs 430 or even to Rs 450 in the medium-term.

(This article was published on October 20, 2012)
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