Portfolio

Pivotals: Reliance Industries (Rs 965.9)

Yoganand D. | Updated on February 26, 2011

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RIL made a good start last week. It breached its immediate resistance at Rs 960 on Tuesday by jumping 3 per cent following its partnership with BP. However, the stock failed to move above the significant resistance zone between Rs 1,000–1,010. It finished the week, gaining 3 per cent.

Short-term traders can initiate fresh short position on a conclusive decline below its immediate support level of Rs 945. Downwards targets for the stock are Rs 920 and Rs 900. On the other hand, traders should tread with caution as long as the stock trades below the Rs 1,000-1,010 band. Only a decisive break through this band will signal bullishness and will be an opportunity to initiate fresh long position. In that case, the stock can trend higher to Rs 1,040-1,050 range and then to Rs 1,080 in the weeks head.

Medium-term trend is sideways consolidation in the big band between Rs 880 and Rs 1,160.

State Bank of India (Rs 2,583.9)

The stock plunged 6 per cent last week, conclusively breaching its 200- and 50-day moving averages. As long as the stock trades below Rs 2,665, the near-term trend stays bearish. Inability to move above this level will be cue for initiating fresh short position with targets of Rs 2,540 and Rs 2,500. Resistances for the days ahead are Rs 2,665 and Rs 2,755. Emphatic surge above the second resistance is required to confirm that the stock is on the brink of bottoming out.

The stock resumed its medium-term downtrend last week that has been in place from its November 2010 peak of Rs 3,515. The stock has its key long as well as medium-term support at Rs 2,500. Strong close below this level can drag SBI lower to Rs 2,200 or even to Rs 1,900 in the medium-term.

Tata Steel (Rs 608)

. It declined 4.7 per cent over the week and is currently testing its key long-term support at Rs 600. The stock formed a dragonfly doji candlestick pattern. Traders can watch out for a reversal from the long-term support and initiate fresh long position with stop-loss at Rs 593. Targets are Rs 635 and Rs 645.

Tata Steel has significant resistance at Rs 660, as long as it trades below this level, the short-term trend remains sideways in the zone between Rs 595 and Rs 660. Supports below the lower boundary are at Rs 580 and Rs 560.

Infosys Technologies (Rs 3,008.2)

The stock failed to move beyond its upper boundary at Rs 3,162 due to selling pressure and began declining. It breached its lower boundary and declined further to find support around Rs 3,000, which is a medium-term base. Traders should tread with caution as the stock is hovering at its crucial support level. Bounce from this level will keep the stock consolidating in the range between Rs 3,000 and Rs 3,162 in the short-term. A fall below the support will pull the stock down to Rs 2,950 and then to Rs 2,600-2,670 levels in the medium-term.

Resistances for the week are at Rs 3,100, Rs 3,162 and Rs 3,230.

Published on February 26, 2011

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