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RIL tumbled almost 5 per cent in the week ago and is testing key medium-term support in the band between Rs 750 and Rs 760. It is trading way below both 21- and 200-day moving averages.
Traders with a short-term perspective should initiate fresh short positions only if this support band is broken resolutely. In that scenario, the stock can decline to Rs 723 and to Rs 700.
An up move in the ensuing week will encounter resistances positioned at Rs 795 and Rs 810.
Strong rally above Rs 810 is required to alter the ongoing near-term downtrend and take the stock higher to Rs 830. Resistances above Rs 830 are at Rs 848 and Rs 858.
Infosys (Rs 2,859.8)
The stock vacillated between the intra-week high of Rs 2,904 and low of Rs 2,796, forming a spinning top candlestick in week chart. This candlestick pattern indicates indecisiveness in the near future.
Traders with short-term horizon can consider initiating fresh short positions only if the stock fails to rally beyond Rs 2,900. Targets are Rs 2,780 and Rs 2,700. Only a conclusive tumble below Rs 2,580 will mar the medium-term uptrend.
On the other hand, jump above Rs 2,900 can push the stock higher to test its medium-term key resistance at Rs 3,000.
It can remain trading sideways below Rs 3,000, before attempting to burst through this resistance decisively.
A rally to Rs 3,300 in the medium-term is possible on a strong up move above Rs 3,000. But Rs 3,050 and Rs 3,160 will be the short-term hurdles to its up move.
State Bank of India (Rs 2,222.3)
The stock was unstable and lost Rs 28 in the previous week. However, it is moving sideways in the band between Rs 2,130 and Rs 2,300.
We re-state that traders with short-term perspective should desist from trading in the stock as long as it hovers within the mentioned band.
A conclusive breach of Rs 2,300 can accelerate the stock higher to Rs 2,350 or to Rs 2,400. Medium-term key resistance is in the range between Rs 2,450 and Rs 2,500.
The stock will strengthen its medium-term uptrend if it emphatically jumps above Rs 2,500. It can then rally to Rs 2,650.
Nevertheless, a fall below the lower boundary of the sideways range will pull the stock down to Rs 2,070 and to Rs 2,000. Next support is at Rs 1,936.
Tata Steel (Rs 453.7)
After declining below Rs 400 to mark an intra-week low at Rs 378, the stock recovered smartly on March 7.
Further, Friday’s 6.7 per cent gain minimiszed its weekly loss. Near-term outlook remains cautious as long as the stock’s key resistance at Rs 470 is not breached.
Strong rally above Rs 470 will take the stock northwards to Rs 490 and Rs 500.
However, failure to move above Rs 470 will pull the stock down to Rs 440 and to Rs 420 in the upcoming week. Subsequent important supports are pegged at Rs 400 and Rs 380.
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