Pivotals

Reliance Industries (Rs 1,026)

Reliance Industries has medium-term support at Rs 880 and the stock has repeatedly bounced off this level since July 2009. The stock is once more rebounding from this support since February 10. Medium-term targets for this bounce are Rs 1,076, Rs 1,150 and Rs 1,200. Support for medium-term will be at the lower boundary.

The stock reached short-term resistance at Rs 1,030 on Friday.

Fresh long positions are advised only on a move above this level with the next targets at Rs 1,055 and Rs 1,076. However, failure to move above Rs 1,076 will imply that the stock could decline to Rs 990 or Rs 956 in the days ahead. Stop-loss level for trading longs can be at Rs 997.

State Bank of India (Rs 2,709.4)

SBI too reversed smartly from the trough of Rs 2,569 recorded on Monday to close the week 4 per cent higher. The stock is halting just above the key short-term resistance at Rs 2,700.

We advise fresh trading longs only on a firm move above Rs 2,720.

Upper target then would be Rs 2,815 and Rs 2,870. But a weak start will drag the stock down to Rs 2,620 or Rs 2,597.

SBI is moving in a narrow band between Rs 2,460 and Rs 2,820 since late January. The fact that the stock is holding above its key medium-term support at Rs 2,500 is a positive. But it needs to record a strong close above Rs 2,875 to signal the possibility of a move higher to Rs 3,100 in the ensuing months.

We maintain the lower targets at Rs 2,200 and Rs 1,900 on a close below Rs 2,500.

Tata Steel (Rs 613.6)

Tata Steel faces long-term resistance in the zone between Rs 650 and Rs 700. It failed to move above this zone in April 2010 and once more reversed from here in January. The long-term view for the stock is however positive and a strong close below Rs 450 is required to negate this view.

Immediate supports for the stock are at Rs 580 and Rs 550. Short-term investors can hold the stock as long as it holds above the second support. Short-term resistances are at Rs 630 and Rs 660. Short-term traders can hold the stock with stop at Rs 600. Subsequent supports are at Rs 592 and Rs 575.

Infosys Technologies (Rs 3,162)

Infosys' Rs 152 surge on Friday helped the stock record a bullish engulfing candlestick pattern on the weekly chart. This is a bullish reversal pattern.

The stock also moved above its 21, 50 and 200 day moving averages in this session. Short-term targets for the stock are Rs 3,204 and Rs 3,276.

Traders can hold the stock as long as it trades above Rs 3,075.

Next support is Rs 3,014 and Rs 2,900.

The stock is in a medium-term down trend since the January peak of Rs 3,500. Targets for this move are Rs 2,900, Rs 2,660 and Rs 2,600. Medium-term bearishness will abate only if the stock records a weekly close above Rs 3,278.

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