Reliance Industries (Rs 893.4)

The stock started losing its near-term bullish momentum and fell 2 per cent in the previous week. Short-term traders can initiate short positions with stop-loss at Rs 910.

Continuation of its decline can pull the stock down to Rs 860 in the short-term. Next key support is at Rs 830 levels.

But medium-term trend will remain up for the stock as long as it trades above Rs 810. Traders with a medium-term perspective can prolong their long holdings with stop-loss at Rs 790.

Strong upward move above Rs 920 will take the stock higher to Rs 950 and to Rs 965 in the medium-term.

State Bank of India (Rs 2,409.9)

After testing the key resistance at Rs 2,500, SBI slumped 4 per cent with good volumes in the week ago.

It has formed a long bearish engulfing candlestick pattern in the weekly charts implying short-term reversal in the trend.

The stock has slipped below its immediate support at Rs 2,433 levels.

Traders with a short-term perspective can initiate fresh short positions with stop-loss at Rs 2,455 levels. Short-term targets for the stock are Rs 2,370 and Rs 2,300.

A strong decline further below Rs 2,300 will mitigate the stock’s short-term uptrend and pull it down to Rs 2,240 and then to Rs 2,125 levels in the forthcoming weeks.

Conversely, an emphatic rally above Rs 2,500 will make the stock resume its medium-term uptrend and take it northwards to Rs 2,750 levels, with a minor pause at Rs 2,600.

Infosys (Rs 2,770.9)

Infosys slipped Rs 43 in the previous week and is still moving sideways in the range between Rs 2,750 and Rs 2,835 levels. Its daily indicators and oscillators are sloping downwards and have signalled a sell. Short-term traders can initiate short positions with stop-loss at Rs 2,815. Targets are Rs 2,700 and then to Rs 2,650. Key supports below Rs 2,650 are at Rs 2,600 and Rs 2,500.

On the upside, a conclusive breakthrough of Rs 2,835 levels will take the stock higher to Rs 2,865 and Rs 2,900 in the short-term.

Tata Steel (Rs 400.7)

The stock was volatile and fell 1.4 per cent in the preceding week. But it is currently testing key support at Rs 400. Only a strong fall below this support will strengthen the stock’s bearish momentum and pull it lower to Rs 387 and to Rs 380 in the ensuing weeks.

Only a decisive rally above Rs 415 will accelerate the stock higher to the Rs 425-430 zone in the short-term. Significant resistances above this zone are at Rs 440 and Rs 450 levels.

(This article was published on February 2, 2013)
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