Technical Analysis

Pivotals - Reliance Industries (Rs 840.9)

Yoganand D. | Updated on September 15, 2012 Published on September 15, 2012




The stock jumped almost 6 per cent with good volumes in the previous week. This up-move was in line with our expectation. Traders with a short-term perspective can retain their long holdings in the stock while maintaining stop-loss at Rs 825.

The stock is hovering well above its 50 and 200-day moving averages.

It can move higher to Rs 850 and then to Rs 865 in the near-term.

Short-term supports are pegged at Rs 800, Rs 780 and Rs 760.

Medium-term trend has been up for the stock since its May low at Rs 671.

Strong rally above Rs 865 will take the stock higher to Rs 900 in the medium-term. Investors can keep their long positions with stop-loss at Rs 742. A conclusive fall below Rs 742 will mar the stock’s medium-term uptrend and pull it lower to Rs 710.

Infosys (Rs 2,632.8)

Infosys rose more than 5 per cent with above average volume in the past week ; this was in line with our anticipation. On Friday, the stock advanced 3 per cent breaching its 200-day moving average and key resistance around Rs 2,600.

Traders can consider prolonging their long positions while pegging the stop-loss to Rs 2,590 levels. The stock can move upwards to Rs 2,700 and then to Rs 2,750.

But traders should be cautious if the stock fails to rally above Rs 2,700 and can take profits off the tables at that juncture if so.

Significant medium-term support is positioned in the band between Rs 2,440 and Rs 2,450.

A decisive fall below this band can pull the stock down to Rs 2,375 in the short-tem.

Only a strong fall below Rs 2,375 will negate the stock’s ongoing up trend and drag it lower to Rs 2,270.

State Bank of India (Rs 1,970.5)

Following an initial decline, the stock skyrocketed 5.5 per cent on Friday recovering its early losses. This rally has breached the stock’s immediate resistance at Rs 1,950.

Traders with a short-tem perspective can consider buying the stock while maintaining stop-loss at Rs 1,940 levels. Target for the stock are Rs 2,000 and then Rs 2,060.

But the stock needs to surpass Rs 2,100 to alter its short-term downtrend and rally to Rs 2,200 levels in the forthcoming weeks.

An inability to move beyond Rs 2,100 will shackle the stock to trading in the zone between Rs 1,900 and Rs 2,100.

Key supports below Rs 1,900 are pegged at Rs 1,850 and Rs 1,800 levels. Next supports are at Rs 1,715 and then Rs 1,600.

Tata Steel (Rs 403.7)

Tata Steel surged 8 per cent breaking through a significant resistance band between Rs 385 and Rs 395 last week. The stock has been on a short-term uptrend from its September low at Rs 347.

This trend reversal is backed by positive divergence in the daily indicators.

Traders can consider buying the stock on dips while maintaining stop-loss at Rs 385 levels.

Targets are Rs 415 and then to the next resistance between Rs 425 and Rs 430.

Investors with medium-term perspective can also accumulate the stock with deep stop-loss at Rs 370.

The stock can rally to Rs 450 in a medium-term time frame. Key supports for the stock are at Rs 385 and Rs 370 levels.

Published on September 15, 2012
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