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RIL moved sideways in the past week testing its key resistance level at around Rs 900 as well as its 200 DMA and closed lower by 2 per cent. However, the stock managed to trade above our first support level of Rs 847. Traders can consider buying the stock as long as it trades above Rs 847. Upward reversal from there and a decisive breakthrough of Rs 900 will lift the stock northwards to Rs 920 or Rs 970. Conversely, inability to move higher and a fall below Rs 847 will pull the stock down to Rs 830. Subsequent supports below Rs 830 are at Rs 809 and then Rs 787 levels.
The stock still continues to be in a medium-term downtrend. However, it is turning around from its long-term support zone between Rs 700 and Rs 750. We restate that investors with greater penchant for risk can consider buying the stock in declines with stop-loss at Rs 700.
State Bank of India (Rs 1,964.2)
SBI climbed Rs 57 or 3 per cent in the previous week. This upmove of the stock is in line with our expectation. Traders with short-term perspective can prolong their long positions with revised stop-loss at Rs 1,870. Upside targets for the stock are Rs 2,000 and then Rs 2,106. Failure to move beyond the first target will confine the stock to moving sideways in the band between Rs 1,800 and Rs 2,000, before moving higher. A drop below Rs 1,800 will drag the stock down to Rs 1,710.
The medium-term trend is down for the stock. However, its long-term support band between Rs 1,700 and Rs 1,900 is cushioning the stock. Emphatic breach of this band will pave way for the stock heading towards Rs 1,510. Important medium-term resistance for the stock is pegged at Rs 2,500 and Rs 2,530 band.
Tata Steel (Rs 467.9)
In line with our anticipation, the stock took a breather and declined close to Rs 454 levels before rebounding and trimming its weekly loss to 2.6 per cent. Traders can still consider holding their long positions with stop-loss at Rs 454. Reversal upwards will take the stock higher to Rs 483, Rs 503 and Rs 515 in the short-term. On the other hand, tumble below its immediate support range between Rs 450 and Rs 454 will pull the stock down to Rs 430 and Rs 419. Traders should avoid initiating longs on a decline below its immediate support range.
The stock has significant medium-term resistance at around Rs 515, which coincides with 38 per cent Fibonacci retracement level of its prior down move. Conclusive jump above this resistance will push the stock higher to Rs 553 or Rs 592. However, a downward reversal from the resistance will confine the stock hovering between Rs 400 and Rs 500.
Infosys (Rs 2,829.1)
The stock was volatile and formed a spinning top candlestick pattern in its weekly candlestick chart signalling indecisiveness. It lost Rs 30 or one per cent in the last week. Traders should tread with caution in the upcoming week. Failure to move beyond Rs 2,900 will pull the stock down to Rs 2,730 or Rs 2,660 in the sessions ahead. A fall below the second support will be a threat for the stock's short-term uptrend and the stock can decline to Rs 2,550 and then to Rs 2,450.
On the upside, the stock is nearing its significant medium-term resistance at around Rs 3,000. Strong move above Rs 3,000 will pave the way for a rally towards its life time high of Rs 3,500 in the medium-term.
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