Portfolio

Pivotals: Reliance Industries (Rs 773.6)

Yoganand D. | Updated on March 12, 2012 Published on March 12, 2012

11relind-col.eps

11infy-col.eps

11sbi-col.eps

11tatastl-col.eps

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.

Published on March 12, 2012

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.