Technical Analysis

Pivotals - Reliance Industries (Rs 747.1)

Yoganand D. | Updated on November 15, 2017 Published on April 07, 2012





The stock is trading almost at the same price level that it ended on the week before. Its short-term trend will remain down as long as the stock trades below Rs 800. However, within this downtrend, if the stock climbs above Rs 770 a pull back rally to Rs 783 or Rs 800 is possible. Only an emphatic breakthrough of Rs 810 will reverse the stock's downtrend and take it higher to Rs 830 in the medium-term. Key resistance above Rs 830 is at Rs 864.

The stock is hovering well below its 50- and 200-day moving averages. A downward penetration of the stock's immediate support at Rs 723 can drag the stock down to Rs 700. Subsequent medium-term support is positioned at Rs 675.

Infosys (Rs 2,850.4)

Infosys slipped marginally by Rs 14 in the last week. It continued its sideways consolidation movement broadly between Rs 2,810 and Rs 3,000. Short-term traders need to tread with caution as long as the stock trades in the aforesaid range. Its daily as well as weekly relative strength indices are featuring in the neutral region. An emphatic up move above Rs 3,000 will strengthen the stock's medium-term uptrend and push it higher to Rs 3,300. However, we don't rule out a minor pause at around Rs 3,100 and Rs 3,200 while trending higher. Immediate resistance is at Rs 2,935 levels.

A plunge below Rs 2,810 can pull the stock down to Rs 2,744 and to Rs 2,700 in the short-term. Medium-term uptrend of the stock will be mitigated only if it declines below the key medium-term support at Rs 2,580 level.

State Bank of India (Rs 2,164.3)

SBI advanced 3 per cent in the last week, marginally closing above its immediate resistance at Rs 2,130. A strong start in the coming week will take the stock higher to Rs 2,220 and to Rs 2,270 levels. Short-term traders can consider holding their long positions with stop-loss at Rs 2,130. Subsequent resistances are at Rs 2,350 and Rs 2,450.

On the other hand, a fall below Rs 2,130 can pull the stock down to Rs 2,050 or Rs 2,000. Support below this level is at Rs 1,936.

Since the December 2011 low of Rs 1,576, the stock has been on a medium-term uptrend. A slump below Rs 1,936 will mitigate the stock's uptrend and pull it lower to Rs 1,830.

Tata Steel (Rs 474.7)

The stock continues to test its important resistance at Rs 470. A strong beginning in the week ahead would be cues for initiating fresh long position with stop-loss at Rs 470. Targets are Rs 490 and Rs 500.

Further, a decisive rally above Rs 500, which is a significant resistance level, will reinforce the bullish momentum and will signal a medium-term uptrend. Subsequent medium-term target will be Rs 520 and Rs 540.

Failure to move above Rs 500 will restrict the stock to trading between Rs 420 and Rs 500.

The daily as well as the weekly relative strength indices are hovering in the neutral region. Key supports for the stock are pegged at Rs 450, Rs 440, Rs 420 and Rs 400.

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Published on April 07, 2012
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