Technical Analysis

Pivotals - Reliance Industries (Rs 773.1)

Yoganand D. | Updated on November 24, 2012 Published on November 24, 2012





RIL was volatile and closed almost flat last week, forming a spinning top candlestick pattern implying indecisiveness in the weekly chart.

The stock is hovering just above its support band between Rs 750 and Rs 760 and testing its 200-day moving average. Short-term trend has remained down for the stock since its September 2012 peak of Rs 881.

Traders with a short-term perspective should tread with caution in the ensuing week. A decisive fall below Rs 750 will mitigate the stock’s medium-term uptrend and strengthen the bearish momentum. In that scenario, it can decline to Rs 725, Rs 710 and Rs 700 in the medium-term.

A near-term rally will encounter resistances at Rs 800 and then at Rs 815.

The stock needs to strongly move above Rs 830 to alter its short-term downtrend and push it higher to Rs 848 and Rs 881 in the same time frame.

Infosys (Rs 2,376)

The stock had advanced by Rs 34 in the previous week but is facing key resistance at its upper boundary of the sideways consolidation band between Rs 2,280 and Rs 2,400. Subsequent resistance is positioned at Rs 2,450 levels.

Although the stock’s daily indicators are displaying signs of upward reversal, the stock has to strongly move above Rs 2,450 to indicate that is short-term trend is turning positive. In that case the stock can rally to Rs 2,524 and Rs 2,649 in the medium-term.

Failure to rally above Rs 2,400 will jail the stock between Rs 2,280 and Rs 2,400 for some more time. An emphatic decline below the stock’s lower boundary at Rs 2,280 will drag it down to Rs 2,189, Rs 2,101 and Rs 2,030.

State Bank of India (Rs 2,089.7)

Short-term trend has been down for the stock from its October peak of Rs 2,363. As long as the stock trades below Rs 2,230, this downtrend stays in place.

Traders with a short-term perspective can consider holding their short positions with stop-loss at Rs 2,140 levels. The stock is currently testing its 200-day moving average. A weak start in the upcoming week will drag the stock lower to Rs 2,026 and Rs 2,000.

Next key supports below Rs 2,000 are at Rs 1,940 and Rs 1,900. Resistances are positioned at Rs 2,230, Rs 2,290 and Rs 2,360. A strong close above Rs 2,290 is required to alter the stock’s downtrend and push it to Rs 2,360 in the medium-term.

Tata Steel (Rs 364.3)

Last week, the stock fell 1.5 per cent in line with our expectation. The stock is trading well below its 50- and 200-day moving averages. Since its October 2012 peak of Rs 426, the stock has been on a short-term downtrend.

The stock’s daily indicators are hovering in the bearish zone and its weekly indicators have entered this zone from the neutral region indicating bearish momentum.

Traders with a short-term perspective can consider prolonging their short positions while maintaining stop-loss at Rs 375. Targets are Rs 354 and Rs 347.

Key medium-term support below Rs 347 is at Rs 335. Only a strong up move beyond Rs 400 will alter the stock’s short-term downtrend. Key resistances are positioned at Rs 390, Rs 400 and Rs 420 levels.

Published on November 24, 2012

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.