Reliance Industries jumped 6 per cent on Monday to register new 52-week high at Rs 954. However, the stock gave away most of its gains subsequently and settled the week with a 1.3 per cent increase.
Medium-term and short-term trends for the stock are up.
Traders with a short-term horizon can consider holding the stock with stop-loss at Rs 890.
An upward move will take the stock higher to Rs 930 and Rs 950 levels.
Immediate key supports for the stock are pegged at Rs 860 and Rs 830.
We reiterate that investors with a medium-term perspective can prolong their long holdings with stop-loss at Rs 790 levels. Targets are Rs 950 and Rs 965.
State Bank of India (Rs 2,513.2)
On Friday, the stock advanced 2 per cent accompanied by above-average volumes and it continues to test key resistance at Rs 2,500.
Short-term traders should remain alert and initiate fresh long positions if the stock makes a positive start in the ensuing week with stop-loss at Rs 2,475. It can trend upwards and reach Rs 2,600 levels in the short-term.
On the downside, a slump below Rs 2,425 can drag the stock down to Rs 2,370 or to Rs 2,300.
But only an emphatic fall below Rs 2,300 is required to mar the short-term uptrend and drag the stock lower to Rs 2,240 and to Rs 2,125 levels.
Medium-term trend has been up for the stock from its August 2012 trough at Rs 1,816 levels. Continuation of the uptrend can push the stock higher to Rs 2,750 in the medium-term.
Infosys (Rs 2,814.6)
For the past two weeks, the stock has been moving sideways in the range between Rs 2,750 and Rs 2,835 levels.
The stock’s daily indicators and oscillators are sloping downwards implying near-term weakness. Therefore, traders should tread with caution as long as the stock trades in the aforementioned range.
A strong dive below Rs 2,750 will drag the stock down to Rs 2,700 or to Rs 2,600 in the ensuing weeks. Key resistances above Rs 2,835 are at Rs 2,865 and Rs 2,900.
Investors with a medium-term perspective can consider buying the stock on dips with stop-loss at Rs 2,600.
Subsequent important resistance above Rs 2,900 is at Rs 3,000.
Tata Steel (Rs 406.5)
Tata Steel declined almost 2 per cent with good volumes in the previous week.
After retracing 50 per cent Fibonacci retracement level of its prior up-move, the stock is currently testing key support at Rs 400.
We reaffirm that only a decisive decline below this level will mitigate the stock’s short-term uptrend and pull it down to Rs 387.
Next support is at Rs 380.
However, an upward reversal from this support will take the stock initially Rs 415 and then to Rs 425-430 zone.
Only a strong rally above Rs 430 will strengthen bullish momentum and take the stock higher to Rs 440 or Rs 450 in the medium-term.