Portfolio

Pivotals: Reliance Industries (Rs 836.7)

Yoganand D. | Updated on September 29, 2012 Published on September 29, 2012

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The stock started losing its bullish momentum and began to move sideways with negative bias in the previous week.



Short-term traders can take profits off the table and re-enter if the stock moves strongly above Rs 860 levels.



In that scenario, the stock can trend upwards to Rs 880 and to Rs 900 in the medium-term. However, near-term outlook is bleak for the stock.



An emphatic decline below its immediate support at Rs 820 can trigger fresh selling interest and the stock can decline to Rs 800.



Next important supports for the stock are positioned at Rs 780 and Rs 760 levels.



Medium-term trend continues to be up from its May 2012 low of Rs 671.



As long as the stock trades above Rs 740, its medium-term uptrend remains in place.



Infosys (Rs 2,534)



Last week , the stock declined 2.4 per cent and it still trades in the sideways range between Rs 2,500 and Rs 2,650.



A significant breakthrough on either side will determine its short-term trend. Traders with short-term perspective can initiate fresh short position if the stock slips below Rs 2,500 levels with same stop-loss.



The stock can decline to Rs 2,440 and to Rs 2,375.



Nevertheless, a decisive plunge below Rs 2,375 will mar the stock’s current uptrend and drag it down to Rs 2,270.



On the other hand, a conclusive rally above Rs 2,650 will push the stock higher to Rs 2,700 and to Rs 2,750 in the short-term. The stock has important medium-term resistance at Rs 2,800.



State Bank of India (Rs 2,237.9)



SBI advanced Rs 25 last week and is still testing its key medium-term resistance band between Rs 2,200 and Rs 2,250. Traders should initiate fresh long positions only if the stock emphatically moves above this resistance band with stop-loss at Rs 2,250.



A decisive rally will take the stock northwards to Rs 2,300 and to Rs 2,350.



However, strong decline below the stock’s immediate support at Rs 2,140 will pull it down to Rs 2,060 or Rs 2,000 in the near-term.



Decisive fall below the key medium-term support at Rs 2,000 levels will mitigate the stock’s uptrend and pull it down to Rs 1,900.



Tata Steel (Rs 400.7)



Though the stock fell marginally last week, its short-term trend remains up.



Traders can continue holding their long position with tight stop-loss at Rs 390 levels.



Targets are Rs 415 and the resistance band between Rs 425 and Rs 430.



Strong rally above Rs 430 will push the stock northwards to Rs 450 in the medium-term.



Stop-loss for medium-term perspective investors can be placed at Rs 380.



Conversely, slump below Rs 390 will pull the stock down to Rs 380 in the near-term. Important supports below Rs 380 are positioned at Rs 370 and Rs 358.

Published on September 29, 2012

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