Pivotals: Reliance Industries (Rs 991.6)

Yoganand D. | Updated on March 12, 2011








Reliance Industries (Rs 991.6)

Though the stock rose one per cent with good volumes for the week, it is still consolidating sideways in the range between Rs 955 and Rs 1,010. Short-term traders should initiate fresh long position only if the stock breaches its immediate ceiling at Rs 1,010 with a stiff stop-loss.

Targets are in the Rs 1,040-1,050 band. Subsequent key resistance for RIL is at Rs 1,080. Inability to move above Rs 1,010 will prolong the sideways movement in the ensuing week. A dive below Rs 955 can drag the stock down to Rs 935 and then to Rs 900. Medium-term trend for the stock remains sideways between Rs 880 and Rs 1,160.

State Bank of India (Rs 2,571.5)

The stock started the week on a negative note by slipping 2.8 per cent on Monday. This bearish trend continued over the week and the stock tumbled almost 5 per cent, breaching its 21 and 50-day moving averages. Traders can initiate fresh short position with tight stoploss at Rs 2,618. .

Downward targets for the stock are at Rs 2,530 and Rs 2,500. Important resistances for the upcoming week are pegged at Rs 2,680 and Rs 2,755. Next key resistance is at Rs 2,850.

SBI has been on a medium-term downtrend from the November 2010 peak of Rs 3,515 levels. We reiterate that an emphatic dive below the stock’s significant support level of Rs 2,500 will reinforce its downtrend and pull the stock lower to Rs 2,200 or to Rs 1,900 in the mediumterm.

Tata Steel (Rs 582)

Tata Steel plunged 5.7 per cent for the week with good volumes. However, the stock is currently testing its lower boundary (Rs 590) and its 200-day moving average around Rs 586. A close below Rs 590 in two more trading sessions will imply decisive penetration of the support level and the stock can decline further to Rs 550 and then to Rs 520 in the forthcoming weeks.

Short-term traders should tread with caution and initiate fresh short position with tight stop-loss only if the stock fails to surpass Rs 590.

Key resistances are at Rs 605, Rs 620 and Rs 640.

Medium-term trend has changed and the stock has been in a downtrend from its January peak of Rs 714. Only a strong move above Rs 660 will mitigate this trend.

Infosys Technologies (Rs 3,054.4)

The stock was volatile during last week and lost Rs 8. It is slipping towards its key support level of Rs 3,000 once again; its 200-day moving average is also positioned around this level. Traders can initiate fresh long position with strict stop-loss only if the stock bounces up from its immediate support range between Rs 3,000 and Rs 3,025. Upward targets are Rs 3,114 and Rs 3,160. Key resistance for the stock is at Rs 3,200. Nevertheless, a slump below Rs 3,000 will strengthen the downtrend which is in place since its January peak of Rs 3,493 . The stock can decline to Rs 2,950 and then to Rs 2,800 in the week ahead in this case.

Published on March 12, 2011

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