RIL declined to the low of Rs 999 before moving higher last week. Medium-term trend in the stock is up since the trough of Rs 885 recorded in February. This trend will turn negative only on a close below Rs 994. Subsequent supports are at Rs 975 and Rs 954. However, if the stock manages to hold above Rs 994, it can move on to Rs 1,111 or Rs 1,180 over the ensuing weeks.

The stock is however pausing at the short-term resistance at Rs 1,040. Fresh longs are recommended only on a close above this level with the next target at Rs 1,065. Conversely failure to move beyond this resistance in the early part of week can drag it lower to Rs 1,017 or Rs 1,000 in the ensuing sessions.

State Bank of India (Rs 2,860.3)

SBI has key long-term support at Rs 2,500 that occurs at 38.2 per cent retracement of the up-move from March 2009 low. If the stock sustains above this support, it will move in a wide band between Rs 2,500 and Rs 3,500 in the upcoming months. Downward target on breach of Rs 2,500 is Rs 2,200.

SBI is in short-term uptrend since March 15. Key short-term support is in the band between Rs 2,700 and Rs 2,720. Moving average compression just below this zone also adds to its significance. The stock however faces resistance around Rs 2,900. Reversal from this zone can drag it down to Rs 2,784 or Rs 2,720 again. Target on a move above Rs 2,900 is Rs 2,950. Traders should stay wary as long as the stock trades below Rs 2,900 since this is also a key medium-term resistance level.

Tata Steel (Rs 628.7)

Tata Steel faces strong long-term resistance in the band between Rs 650 and Rs 700 and a close above Rs 700 can make re-test of the previous life-time high at Rs 927 a possibility. But the stock is currently hovering just below this resistance zone. The medium-term decline from January peak can stop at Rs 583 and Rs 552. Investors with short-term perspective can hold as long as the stock trades above the second support.

The stock rose to the key short-term resistance at Rs 628 on Thursday and formed a doji star at that level. Traders ought to tread carefully with their long positions for a downward reversal can drag it down to Rs 616 or Rs 606 in the days ahead. Conversely move above Rs 628 can take the stock to Rs 642 or Rs 662.

Infosys Technologies (Rs 2,909.2)

Infosys Technologies could not penetrate the strong support around Rs 2,900 but hovered just above it last week. The medium-term trend is down since the January peak at Rs 3,494. Targets for this move are Rs 2,900 and Rs 2,768. In other words, strong decline below Rs 2,900 can drag the stock to the area around Rs 2,768.

Traders should, however, wait for a strong move below Rs 2,900 before initiating fresh shorts. Reversal from the current level can take the stock higher to Rs 3,050 or Rs 3,150. Failure to move beyond the first resistance will also be a cue for initiating fresh short positions.

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