Technical Analysis

Pivotals: Reliance Industries (Rs 834.4)

Yoganand D. | Updated on November 21, 2017 Published on May 18, 2013

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Last week, the stock advanced 2.6 per cent breaching the key resistance as well as 200-day moving average at around Rs 820. Near-term trend is up for the stock.

Traders with short-term perspective can consider holding their long positions with stop-loss at Rs 820. The stock can rally to Rs 860 in the week ahead.

Next key resistance for the stock is positioned at Rs 880. An emphatic close above this resistance is required to alter the stock’s medium-term downtrend and push it higher to Rs 900-920 range in the medium-term.

On the downside, the stock has significant support at Rs 800 after Rs 820. A conclusive decline below Rs 800 will weaken the stock and drag it lower to Rs 780 or to Rs 765 in the medium-term.

State Bank of India (Rs 2,424.6)

SBI surged 5 per cent with good volume in the previous week. The rally has emphatically breached the key resistance at Rs 2,340 level. Short-term trend is up for the stock.

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

The daily indicators are featuring in the bullish zone implying upward momentum. Short-term traders can consider holding their long positions with stop-loss at Rs 2,340 levels. Near-term targets are Rs 2,500 and Rs 2,550 levels.

As long as the stock trades above Rs 2,200 levels, its short-term trend remains up.

A strong decline below this level will mar the uptrend and drag the stock down to Rs 2,150 and then Rs 2,080-2,100 band in the short-term.

The stock has significant long-term resistance in the range between Rs 2,500 and Rs 2,550.

Only a conclusive breakout of this resistance range will pave the way for a rally to Rs 2,750 in the medium-term.

Infosys (Rs 2,350.1)

Infosys was volatile and finished the week forming a doji candlestick pattern indicating neutral stance in the weekly chart.

Near-term trend is up for the stock. But it is facing key resistance ahead at Rs 2,400 levels.

Traders should remain cautious as long as this resistance is not broken. A decisive jump above the resistance will take the stock higher to Rs 2,500 levels.

Further, an emphatic rally above Rs 2,600 will reverse the stock’s medium-term downtrend and take it higher to Rs 2,700 in the medium-term. Important supports for the ensuing week are pegged at Rs 2,300 and Rs 2,200 levels.

Tata Steel (Rs 311.9)

The stock was choppy and fell almost Rs 7 in the previous week. It has been moving sideways in the band between Rs 295 and Rs 325 since early April this year.

We reiterate our bullish short-term outlook on the stock.

Traders can consider holding their long positions in the stock while maintaining tight stop-loss at Rs 300.

Immediate target is Rs 320.

An emphatic close above Rs 320 will pave the way for an up-move to Rs 335 or to Rs 345 in the upcoming weeks. Subsequent key resistance is at Rs 365 levels.

Nevertheless a strong fall below the key immediate support at Rs 300 can pull the stock down to Rs 270 in the medium-term.

A medium-term uptrend to Rs 420 will be in the offing if the stock decisively jumps above Rs 390.



Published on May 18, 2013
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