Pivotals: Reliance Industries (Rs 875.5)

YOGANAND D. | Updated on November 09, 2013 Published on November 09, 2013





RIL fell 3.6 per cent during the week after testing a key resistance at Rs 920. While declining, the stock breached an important base at Rs 890 which has turned into a key resistance now. Traders with a short-term perspective should tread with caution as long as the stock trades below this resistance.

Strong breakthrough of Rs 890 will be cue for initiating fresh long positions with a stop-loss at the same level. In that scenario, the stock can once again test Rs 910 or Rs 920 in the week ahead.

But a failure to rally above Rs 890 can drag the stock down to Rs 860 levels. Next key supports for the stock are pegged at Rs 840 and Rs 820.

Investors with a medium-term perspective can remain invested as long as the stock trades above Rs 820 levels. An emphatic rally above Rs 936 can lead the stock to Rs 955 levels in the medium-term.

State Bank of India (Rs 1,744.2)

For the past two weeks, the stock has been very volatile. It declined 7.5 per cent last week, having gained 9.8 per cent in the week before that. Short-term traders should desist from trading in the stock as it is very choppy.

Further, its September 2013 quarter results announcement is scheduled on November 13.

Since its early September low of Rs 1,455, the stock has been on a nascent uptrend.

The stock is now hovering just above a key support band between Rs 1,680 and Rs 1,700. A strong fall below this support will mitigate the stock’s progressing uptrend and pull it down to Rs 1,600 levels.

Next supports are in the band between Rs 1,500 and Rs 1,510 and then at Rs 1,400. On the upside, the resistances are at Rs 1,800 and Rs 1,900. The stock has to decisively rally above Rs 2,000 to change its medium-term downtrend and take it to Rs 2,200.

Infosys (Rs 3,357)

The stock climbed Rs 78 for the week and is now testing the upper boundary of the sideways consolidation range at Rs 3,360 mentioned in this column two weeks ago. Strong up-move can take the stock to Rs 3,400 and then to Rs 3,500 in the coming weeks.

The short as well as medium-term trends are up for the stock. Indicators on the daily charts have re-entered the bullish zone from the neutral region implying bullish momentum.

Investors with a medium-term perspective can stay invested with a stop-loss at Rs 2,800. Key supports to watch in the week ahead are at Rs 3,250, Rs 3,200 and Rs 3,100 levels.

Tata Steel (Rs 355.6)

Tata Steel extended its upward journey by gaining 5 per cent with good volumes in the previous week. Its September 2013 quarter results announcement is due on November 13. Therefore, traders with a short-term perspective should tread with caution in the ensuing week. Both short and medium-term trends are currently up for the stock.

Immediate key supports are positioned at Rs 340, Rs 320 and Rs 310 levels.

Strong decline below Rs 310 will alter the stock’s short-term uptrend and drag it down to Rs 290 levels.

Conversely, a decisive up-move above the significant resistance at Rs 360 can accelerate the stock to Rs 370 or 380 levels in the forthcoming weeks.

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Published on November 09, 2013
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