The Hindu Business Line : Pivotals: Reliance Industries (Rs 1,048.9)

The rocky ride in the RIL counter continued last week as the stock first raced to an intra-week high of Rs 1,110 before plunging to a low of Rs 1,011. Since the stock is now trading at ex-bonus rate, all our resistances and supports need to be halved. Key medium-term resistance for the stock exists at Rs 1,100 and inability to move above this level will result in a sideways move between Rs 900 and Rs 1,100 for a few more weeks. Intermediate term supports for the stock are at Rs 860 and Rs 760 and the stock is expected to halt at these levels in the event of a sharp decline.

Short-term trend in the stock is down and the stock will face resistance at Rs 1,075 and Rs 1,113 in the week ahead. Inability to move past the first resistance will mean that the stock can decline to Rs 1,008 or Rs 980 in the days ahead.

SBI (Rs 2,242.5)

SBI remained in the narrow band between Rs 2,250 and Rs 2,350 in the first four sessions of the week but plunged sharply lower on Friday to the intra-week low of Rs 2,144. The picture has marred slightly on the weekly chart with the formation of an evening star candlestick pattern. The medium-term down trend that began from the Rs 2,500 peak appears to have resumed that has the targets of Rs 2,060 and Rs 1,950. Key medium-term support exists between Rs 1,900 and Rs 2,000 and investors can watch out for buying opportunity in that zone.

The stock will face strong resistance in the zone between Rs 2,350 and Rs 2,400 in the days ahead. If the decline continues, immediate targets are Rs 2,090 and Rs 2,050.

Tata Steel (Rs 544.9)

Tata Steel could not rally to Rs 585 as anticipated by us and declined to Rs 517 instead. As indicated last week, the stock has support at Rs 520 and Rs 507 in the near term and traders holding long positions can continue to do so unless the stock closes below Rs 520. A recovery from here will make the stock rally to Rs 572 or Rs 661.

However key short-term support is at Rs 490. Decline below this level will result in the stock moving in a range between Rs 430 and Rs 600 for a few more months.

Infosys (Rs 2,328.3)

The sharp decline in the last two sessions resulted in Infosys closing the week with a loss of Rs 99. Key short term support for the stock is at Rs 2,260. Traders can hold their long positions till the stock trades above this level. Next downward target is at Rs 2,127.

Key resistance for the week ahead would be at Rs 2,400 and Rs 2,460. Reversal from the first resistance will result in a decline to Rs 2,260.

Medium-term view for the stock will stay positive as long as it trades above Rs 1,900.

ONGC (Rs 1,168.2)

ONGC closed on an absolutely flat note despite the spike to Rs 1,227 on Monday. Our short-term view remains unaltered. Unless the stock records a close above Rs 1,200, it can decline to Rs 1,101 or Rs 1,039 in the ensuing sessions.

Maruti Suzuki (Rs 1,564.1)

Maruti Suzuki moved above the short-term resistance of Rs 1,600 on Wednesday but it could not sustain at that level and declined to Rs 1,510 by the end of the week. Key short-term support for the stock is at Rs 1,480 and decline below this level will drag the stock to Rs 1,368.

Medium-term view for the stock is neutral and a sideways move between Rs 1,350 and Rs 1,750 is likely for a few more weeks. — Lokeshwarri S.K.

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