Technical Analysis

Pivotals: Reliance Industries (Rs 793.9)

LOKESHWARRI S.K. | Updated on December 01, 2012 Published on December 01, 2012

2Reliance.eps

2sbi.eps

2sbic.eps

2tatac.eps



Reliance went on to reverse from the intra-week low of Rs 771 to form a morning star pattern in the weekly candlestick chart. That this reversal happened from the long-term 200 day moving average is also positive for the stock. But the stock is halting just below the short-term resistance at Rs 806. Fresh long positions are advised only on a firm move beyond this level early next week. Inability to do so will drag the stock lower to Rs 790 or Rs 780.

But move above Rs 806 can result in the stock moving higher to Rs 821 or Rs 835 in the coming weeks.

The medium-term trend in the stock turned positive since the trough at Rs 673 formed in May. This view will reverse only on a close below Rs 750. If the stock manages to hold above this level, move to Rs 870 or Rs 935 is possible again in the months ahead.

State Bank of India (Rs 2,170)

SBI too staged a good reversal last week, going on to close Rs 80 higher. The stock has key short-term support at Rs 2,030. Close below this level is required to reverse the uptrend that is in place since August. As long as the stock trades above this level, possibility of move higher to Rs 2,388 or Rs 2,591 remains open.

For the short-term the stock will face resistance at Rs 2,171, Rs 2,208 and Rs 2,240. The stock will get support for the week at Rs 2,100 and Rs 2,044.

Despite the stock moving in a wide range between Rs 1,800 and Rs 2,500, the medium-term outlook for SBI is positive. The stock will have to breach its December 2011 low of Rs 1,576 to negate this view.

Infosys (Rs 2,436.6)

Infosys too recorded a sharp break-out last week to close Rs 60 higher. This move has, however, taken the stock close to its 200-day moving average at Rs 2,492. There is the next hurdle just above at Rs 2,512. Short-term traders can book some profits if the stock is unable to move above this level. Next short-term target on move above Rs 2,512 is Rs 2,650.

Short-term supports for the stock are at Rs 2,400 and Rs 2,356.

Infosys is reversing from critical long-term support zone between Rs 2,000 and Rs 2,200. If the stock manages to hold above Rs 2,300 in the coming weeks, it will signal the formation of a significant trough at Rs 2,101 in July.

Tata Steel (Rs 385.4)

The medium-term view on Tata Steel is rather weak since it is forming consecutively lower peaks since this February. The stock has moved close to its key medium term support zone between Rs 340 and Rs 360. Investors with a greater penchant for risk can accumulate the stock in this zone with stop at Rs 330.

The stock will face short-term resistance at Rs 400 and Rs 426 in the days ahead. Supports will be available at Rs 359 and Rs 347.

Published on December 01, 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.