The Hindu Business Line : Pivotals: Reliance Industries (Rs 1,956.7)

RIL declined towards our first medium-term target in the first trading session of the week but the 200 day moving average positioned there helped to arrest the slide.

As indicated last week, the third leg of the down-move from Rs 2,490 peak has the targets of Rs 1,827 and Rs 1,532.

Since the first target has already been achieved, a rebound is possible here. But if the stock is unable to move beyond Rs 2,000 next week, it will imply a decline to the next medium-term target of Rs 1,532.

The short-term trend in the stock is up but it will face resistance at Rs 2,000, Rs 2,050 and Rs 2,100.

A rally above Rs 2,100 is required to make the medium-term view neutral again.

Fresh shorts can be initiated on a failure to close above Rs 2,000.

SBI (Rs 2,204.2)

SBI vacillated in the range between Rs 2,050 and Rs 2,250 before closing the week on a flat note.

The hammer pattern in the weekly candlestick chart as well as minor up-move in the daily oscillator charts denote that the stock can move higher to Rs 2,285 or Rs 2,335 in the week ahead.

Reversal from either of these levels will drag the stock lower to the medium-term support at Rs 1,900.

Traders can hold their longs with a stop at Rs 2,080.

Fresh purchases should be avoided on a close below this level since the next short-term target for the stock is Rs 1,880.

Tata Steel (Rs 499.7)

Tata Steel too attempted to claw back from the low of Rs 434 recorded on Wednesday. This short-term uptrend will face resistance at Rs 529 next week.

Failure to move above this level will imply an impending move lower to the medium term support zone between Rs 405 and Rs 420.

The medium-term trend in the stock appears to have reversed from the Rs 585 peak.

A rebound from these levels can make the stock consolidate in the band between Rs 400 and Rs 600 for a few more weeks.

Such a consolidation will be conducive for an extension of the intermediate-term uptrend that began from March lows.

Infosys (Rs 2,217.8)

Infosys too trudged sideways in a narrow band last week.

The medium-term trend in the stock remains downward and unless it records a strong close above Rs 2,320, the possibility of the stock declining towards Rs 1,936 or Rs 1,906 over the medium-term remains open.

Fresh purchases from a trading perspective are therefore recommended only on a close above Rs 2,320.

The stock could remain in this narrow band between Rs 2,130 and Rs 2,250 for a few more sessions. Traders can avoid this counter as long as the stock is glued to this range.

ONGC (Rs 1,159.2)

ONGC recouped most of the losses made on Tuesday in the subsequent sessions and closed the week with a mild Rs 26 gain. Key resistance for the week ahead is at Rs 1,210.

Failure to move above this level will denote an impending decline to Rs 1,025. Medium-term view will turn neutral once the stock records a close above Rs 1,210.

Maruti Suzuki (Rs 1,473.3)

Maruti rebounded strongly last week to close 5 per cent higher. Short-term resistances exist at Rs 1,520, Rs 1,560 and Rs 1,600. Move beyond Rs 1,600 is required to mitigate the negative medium-term view. Key medium-term supports are Rs 1,368 and Rs 1,250.

— Lokeshwarri S.K.

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