Technical Analysis

Pivotals - Reliance Industries (Rs 844.8)

Yoganand D. | Updated on February 16, 2013 Published on February 16, 2013





RIL fell more than 2 per cent in the previous week, in the midst of volatility. The stock has been in a short-term downtrend since registering a 52-week high at Rs 954 on January 21. As long as the stock trades above its significant long-term support zone between Rs 800 and Rs 810, its medium-term uptrend remains in place.

Strong decline below this support zone will pull the stock down to Rs 760 or Rs 740 in the medium-term.

The stock's daily indicators and oscillators are showing signs of weakness and have signalled a sell. Traders with a short-term perspective can initiate fresh short positions with stop-loss at Rs 860.

Downside targets are Rs 820 and Rs 800. Important resistances for the stock are positioned at Rs 880 and Rs 900.

State Bank of India (Rs 2,233.2)

After testing key resistance at Rs 2,500 in late January 2013, the stock reversed direction and has been in a near-term downtrend. This trend has retraced 50 per cent Fibonacci retracement of the stock’s medium-term uptrend. Nevertheless, the stock is testing key support in the band between Rs 2,200 and Rs 2,230.

Short-term traders should tread with caution as long as this support holds.

Strong downward breakthrough will reinforce bearish momentum and pull the stock down to Rs 2,130 and then to Rs 2,080 levels in the short-term. But an upward reversal from current support band will take the stock higher to Rs 2,330 or to Rs 2,380 levels. Next resistance is at Rs 2,450 levels.

Conclusive decline below Rs 2,080 will mar the stock’s medium-term uptrend and drag it down to Rs 1,950 levels.

Infosys (Rs 2,785.2)

Infosys was wavering and closed almost flat in the week ago and is still consolidating sideways in the range between Rs 2,750 and Rs 2,835 levels.

The stock’s daily indicators and oscillators are moving downwards.

Traders with a short-term horizon should tread with care as long as the stock trades within the aforementioned sideways range.

Targets on strong decline below Rs 2,750 are Rs 2,700 and then to Rs 2,650. Important next supports are at Rs 2,600 and Rs 2,500 levels.

Conversely, if the stock makes a decisive jump above Rs 2,835 levels, it will propelnorthwards to Rs 2,865 and Rs 2,900.

Tata Steel (Rs 375.9)

Tata Steel fell 2.8 per cent last week. Short-term trend for the stock has been down from its January 2013 peak of Rs 448.

It is trading well below its 50 and 200-day moving averages.

The daily indicators are featuring in the bearish zone and weekly indicators are on the brink of entering this zone.

Short-term trend will remain down as long as the stock trades below Rs 410.

Traders can initiate fresh short positions with stop-loss at Rs 388. Targets are Rs 365 and Rs 359.

Significant support for the stock is at Rs 350.

Key resistances for the stock are pegged at Rs 392, Rs 400 and Rs 410.

Published on February 16, 2013
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