The stock was wavering in the previous week and advanced only marginally. But it is hovering well above its 50 and 200-day moving averages. Traders can consider continue holding their long position with revised stop-loss at Rs 820 levels. Targets are Rs 850 and Rs 860 levels. The stock’s daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering the bullish zone implying upward moment is on the cards. Key supports for the stock are at Rs 800 and then at Rs 765.

Medium-term trend stays up as far as the stock trades above Rs 750 levels. An emphatic jump above Rs 860 can push the stock northwards to Rs 880, Rs 900 and Rs 935 levels in the upcoming months.

State Bank of India (Rs 2,320.8)

The stock gained 2.6 per cent on Friday recouping its initial loss in the week. Nevertheless, the stock continues to test its significant long-term resistance in the range between Rs 2,300 and Rs 2,350. A strong breakthrough of this range is required to take the stock upwards to Rs 2,500 with minor pause at around Rs 2,400 levels in the weeks ahead.

From short-term perspective, a rally above Rs 2,350 can go higher to Rs 2,400 and then to Rs 2,450. Traders with short-term perspective can continue holding their long positions with stop-loss at Rs 2,245 levels. But a fall below the stock’s immediate key support at Rs 2,190 will mar its short-term uptrend and drag the stock down to Rs 2,150 or 2,100.

Infosys (Rs 2,277.2)

Infosys fell almost 2 per cent in the week ago and is currently testing key support in the band between Rs 2,280 and Rs 2,310. The stock’s daily indicators are featuring in the negative terrain indicating bearish momentum. Medium as well as short-term trends are down for the stock. Traders with a short-term perspective should tread with caution and initiate fresh short positions only if the stock decisively declines below the aforementioned support band with stop-loss at Rs 2,310 levels. Short-term targets are Rs 2,230 and Rs 2,185. Subsequent key support is at Rs 2,100.

Significant resistances are at Rs 2,400, Rs 2,450 and Rs 2,512 levels. A decisive move above Rs 2,512 is required to reinforce bullish momentum and take the stock upwards to Rs 2,650 and to Rs 2,700.

Tata Steel (Rs 397.2)

Tata Steel also recouped its initial loss by gaining more than 2 per cent, while seeingabove average volumes on Friday. But the stock is still testing its important resistance at Rs 400. Traders can wait and initiate fresh long positions if the stock surpasses this key resistance with stop-loss at Rs 400. Near-term targets are Rs 410 and Rs 420. Immediate support is at Rs 383. Tumble below this level can drag the stock down to Rs 374. Next key support is in the range between Rs 340 and Rs 360.

Key resistance positioned in the band between Rs 435 and Rs 440 will be the next threat for the stock. An emphatic move above this band will signify a medium-term uptrend and the stock can rally to Rs 465 or Rs 475 levels.

(This article was published on December 15, 2012)
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