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RIL yet again faltered at the upper boundary, and has moved back into the wide consolidation band between Rs 840 and Rs 885.
It has been in this band since mid-November 2013.
The stock’s 21- and 50-day moving average failed to cushion it in the later part of the week.
The indicators in the daily chart are featuring in the neutral region with negative bias.
The stock has the possibility of testing the lower boundary at Rs 840.
Therefore, traders with a short-term perspective can initiate fresh short positions with a stop-loss at Rs 885. Key supports below Rs 840 are at Rs 820 and Rs 800.
On the upside, the stock needs to rally above Rs 895 to reinforce bullish momentum.
Significant resistance at Rs 910 and Rs 930 will come to play if the level Rs 895 is breached emphatically.
The stock has been in a medium-term consolidation phase in the range between Rs 770 and Rs 930 since August 2013.
Strong rally beyond Rs 930 can take the stock up to Rs 955 in the medium-term.
State Bank of India (Rs 1,716.1)
The stock reversed lower just before its key resistance at Rs 1,810 and fell 3 per cent for the week.
It is heading towards the lower boundary of the sideways range between Rs 1,675 and Rs 1,920.
The indicators in the daily chart have entered the negative territory implying bearish momentum.
Short-term traders can initiate short positions in rallies with a stop-loss at Rs 1,810.
A decisive fall below Rs 1,675 can pull the stock to Rs 1,600. Next support is at Rs 1,500.
The stock needs to move above Rs 1,810 for an up move to Rs 1,920. Key resistances after this level are placed at Rs 2,015 and Rs 2,065.
Infosys (Rs 3,565.4)
Infosys was very volatile in the previous week, closing on a flat note.
Nevertheless, the stock is hovering a little below the significant resistance at Rs 3,600.
Traders with a short-term perspective should tread with caution in the ensuing week as the stock is choppy and the company is scheduled to announce its December 2013 quarter results on January 10.
An emphatic breakout of the aforementioned resistance can take the stock northwards to Rs 3,750 and to Rs 4,000 in the medium-term.
Investors with a medium-term perspective can extend their long positions with a stop-loss at Rs 3,000.
The stock has important support pegged at Rs 3,450; a fall below this level can pull it down to Rs 3,350 and to Rs 3,250 in the short-term. Next supports are at Rs 3,150 and Rs 3,000.
Tata Steel (Rs 412.6)
Last week, the stock fell 2.7 per cent reversing lower from the key resistance at Rs 423. It is now testing support at Rs 410.
A slump below this level can drag it lower to Rs 400 and further fall will test support at Rs 386.
Traders with a short-term perspective can consider taking profits off the table and wait for the corrective decline to end.
As long as the stock trades above Rs 370, the short-term trend remains up.
A decisive decline is required to mar the uptrend and pull it lower to Rs 350.
However, a strong rally above Rs 423 can push the stock higher to the resistance band between Rs 440 and Rs 450.
The medium-term trend is up for the stock.
Investors with medium-term perspective can prolong their long holdings with a stop-loss at Rs 320.
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