Technical Analysis

Pivotals: Reliance Industries (Rs 857.4)

YOGANAND D. | Updated on August 03, 2013 Published on August 03, 2013

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RIL was volatile and lost 3.6 per cent in the previous week. Its short-term trend is under threat as the stock is testing key support at Rs 850.

A decline below this level can pull it down to Rs 830 or to Rs 800-810 band in the short-term.

Subsequent key base is at Rs 770.

Investors with a medium-term perspective can consider exiting the stock and re-entering later. However, an upward reversal from the current support will push the stock higher to Rs 880 and to Rs 900 in the near-term. Next resistance is at Rs 920.

State Bank of India (Rs 1,681.3)

The stock slumped 4.7 per cent in line with our expectations in the week ago and achieved our initial target of Rs 1,690. Traders with short-term perspective can consider holding their short positions with revised stop-loss at Rs 1,750. Short and medium-term trends are down for the stock. It can continue its downtrend and test immediate support at Rs 1,600. Next support is at Rs 1,510.

Conversely, an upward reversal can encounter resistances at Rs 1,800 and Rs 1,900. Short-term trend will be altered only if the stock moves beyond Rs 1,900 and push higher to Rs 2,000-2,030 zone.

Infosys (Rs 3,006.7)

Last week, the stock advanced 3 per cent and is testing the resistance band between Rs 2,950 and Rs 3,000.

The daily indicators are hovering in the over-bought levels indicating near-term correction is on the cards. We reiterate that traders can consider booking profits at this juncture and re-enter following an emphatic upward breakout the aforementioned resistance band. Strong breakthrough of Rs 3,000 can push the stock higher to Rs 3,225 levels in the medium-term.

On the other hand, a downward reversal can drag the stock down to Rs 2,800 or to Rs 2,700 base level in the short-term.

Tata Steel (Rs 202.3)

Tata Steel tumbled 7.6 per cent in the previous week as we had anticipated. However, the stock is testing significant support at Rs 200.

Its daily and weekly indicators are featuring in the oversold territory implying that a near-term corrective rally is in the offing.

An upward reversal can push the stock higher to Rs 220, Rs 230 and to Rs 240 in the short-term. Key resistances above Rs 240 are at Rs 250, Rs 264 and Rs 282. But a strong decline below Rs 200 will pull the stock down to Rs 175.

Published on August 03, 2013
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