Technical Analysis

Pivotals - Reliance Industries (817.6)

Yoganand D. | Updated on November 15, 2017 Published on January 28, 2012





The stock surged 3 per cent in the previous weekin line with our expectations. It is hovering well above both the 21- and 50-day moving averages.

Traders can prolong holding their long positions with stop-loss at Rs 790. We restate the upper target at Rs 827 and Rs 845.

The stock has a significant obstacle in the band between Rs 845 and Rs 850.

Short-term supports for the stock are pegged at Rs 770 and Rs 750.

Though the medium-term trend is down for the stock, its long-term support in the band between Rs 700 and Rs 750 is cushioning the stock.

Conclusive breach of Rs 850 will pave way for a rally to Rs 900 in the upcoming weeks. An emphatic weekly decline below Rs 687 will twist the long-term view bearish.

Infosys (Rs 2,720.6)

The stock witnessed a strong rally by climbing 5.3 per cent in the last week, after taking support at around Rs 2,585 level. Short-term perspective traders can consider holding their long positions with stop-loss at Rs 2,670 levels.

Targets are Rs 2,775 and Rs 2,812. Failure to move above the first target will be cue for taking the profits off the table.

But fall below the immediate support at Rs 2,660 can pull the stock down to Rs 2,585 or to Rs 2,555 in the short-term.

Medium-term trend remains up for the stock.

This view will be negated only if the stock declines below Rs 2,467 levels. Investors with a medium-term perspective can hold the stock with stop-loss at Rs 2,467.

A move above the medium-term resistance level at Rs 2,900 will take the stock higher to Rs 3,000.

State Bank of India (Rs 2,042.6)

SBI jumped 5.7 per cent in the last week, penetrating its immediate resistance at around Rs 1,975.

The stock has been on a short-term uptrend since its December 2011 trough of Rs 1,576. But it is likely to face resistance at Rs 2,100 levels in the near future.

Short-term traders should, therefore, tread with caution as the stock is nearing a key resistance and its daily indicators are reaching overbought levels.

Immediate supports for the week ahead are at Rs 1,967 and Rs 1,890. Key resistance above Rs 2,100 are at Rs 2,190 and Rs 2,220.

As long as the stock trades above Rs 1,830 its short-term uptrend remains in place. A fall below this level will pull the stock down to Rs 1,765 and to Rs 1,715 levels.

Tata Steel (Rs 458.7)

Tata Steel too surged 5 per cent with good volumes in the last week.

The stock is moving in line with our expectation and we reaffirm our upper target at Rs 478 and Rs 491. Traders can consider holding their long positions with stop-loss at Rs 442.

Supports for the ensuing week are at Rs 433, Rs 419 and Rs 400. A decisive tumble below Rs 400 will mar the current short-term uptrend and drag the stock down to Rs 380 and Rs 363 levels.

The stock is also currently nearing the medium-term trend deciding zone between Rs 476 and Rs 485.

Strong move above this zone will reverse the stock's trend upwards and take it higher to Rs 505 in medium-term.

Published on January 28, 2012
This article is closed for comments.
Please Email the Editor