In line with our anticipation, the stock declined last week and reached the price target of Rs 550. The stock tumbled 5.7 per cent with good volumes last week, emphatically penetrating its important support at Rs 550. Traders with short-term perspective can initiate fresh short position if the stock fails to move above its immediate resistance level of Rs 550 while maintaining this level as stop. Targets are Rs 520 and then Rs 510.

Only a strong move above Rs 550 can take the stock higher to Rs 565 or Rs 575. Subsequent resistances are pegged at Rs 590 and Rs 605.

With the sharp 4.5 per cent fall on Friday, the stock appears to have resumed its medium-term downtrend that has been in place since its April peak of Rs 641. The stock can decline to our price target of Rs 510 and next to Rs 493 in the months ahead.

Reliance Industries (Rs 791.6)

The stock, after declining 5 per cent in the previous week, continued with its short-term downtrend last week too. It closed 4 per cent lower. This down move was in line with our expectation. The stock conclusively breached its short-term key support at around Rs 935, which it tested on Monday and Tuesday. Short-term traders can consider holding their short positions with stop-loss at Rs 810 levels.

The stock can continue to decline in the days ahead, targets are at Rs 770 and then Rs 750-760 band. Traders can take the profits off the table if the stock fails to decline below Rs 770. Conversely, a strong move above Rs 810 will push the stock higher to Rs 835 and then to Rs 850. Next resistances are at Rs 880 and Rs 900.

Medium-term trend is down for the stock since its April peak of Rs 1,065. The stock has just dipped below the key level at Rs 800. Decisive close below this level will drag the stock down initially to Rs 770 and then to Rs 750. Strong plunge below Rs 750 will pave the way for a decline to Rs 700 in the ensuing months.

State Bank of India (Rs 2,232.8)

SBI plunged 4.6 per cent last week, breaching its 50-day moving average. Forming a parabola over the past one and half months, the stock is again back to its significant long-term support band between Rs 2,150 and Rs 2,200 and is currently testing it. Short-term traders should tread with caution as long as the stock trades above this support band.

Near-term trend is down for the stock from its peak of Rs 2,529 levels and this trend remains down as long as the stock hovers below Rs 2,350 levels. Strong move above this will lift the stock higher to Rs 2,400 and to Rs 2,500 levels.

The stock has been on a medium-term downtrend since its April high of Rs 2,959. Strong breakthrough of the key support band between Rs 2,150 and Rs 2,200 will reinforce the stock's downtrend and pull the stock down to Rs 2,000 and then to Rs 1,900 in the medium-term.

Infosys (Rs 2,590.5)

Infosys emphatically broke through its significant long-term support at Rs 2,700 last week by plunging 6 per cent. This decline has reinforced its intermediate-term downtrend, that has been in place from this January peak of Rs 3,493. The stock is heading toward its next support level of Rs 2,500. Dive below this level will drag the stock down to its long-term support at Rs 2,400 in the upcoming months.

Medium and short-term trends are down for the stock. Key resistance from the coming week are at Rs 2,660, Rs 2,700 and Rs 2,825 levels.

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