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Reliance Industries (Rs 878.7)
After its whipsaws in earlier weeks, the stock of Reliance Industries has fallen again into the sideways trading range between Rs 840 and Rs 885 that has been in place from mid-November 2013. Indicators in the daily charts are hovering in the neutral region.
Short-term traders should tread with caution in the week ahead and initiate fresh long positions if the stock moves above Rs 885.
A decisive breakthrough of this level can push the stock to Rs 910 and then to Rs 930 levels.
On the other hand, continuation of the downtrend will activate key support at Rs 860 and Rs 840 levels to arrest the declines. The stock can spend some more time in the aforementioned sideways band before charting a lucid short-term direction. Important supports below Rs 840 are at Rs 820 and Rs 800.
Medium-term trend is also sideways in the broad band between Rs 770 and Rs 930.
A conclusive move above Rs 930 is needed to take the stock northwards to Rs 955.
State Bank of India (Rs 1,769.9)
SBI advanced a little in the previous week. Nevertheless, the short-term trend continues to be uncertain as the stock is progressing in a narrow range.
Likely sideways movement range is between Rs 1,675 and Rs 1,920. Traders with a short-term perspective should stay alert as long as the stock hovers in the band.
Immediate key resistance is at Rs 1,810. A jump above this level can push the stock to test its upper boundary at Rs 1,920. Subsequent significant resistances are pegged at Rs 2,015 and Rs 2,065.
Conversely, a tumble below Rs 1,675 will pave the way for a decline to Rs 1,600 in the short-term. Support below this place is at Rs 1,500.
Infosys (Rs 3,562.2)
Following an initial skid last week, the stock bounded up smartly and ended the week on a marginally positive note. However, the stock is approaching the key resistance at Rs 3,600. The indicators in the daily chart are losing their bullish momentum.
Hence, failure to decisively surpass this resistance will be the nod for taking partial profits off the table.
Only a conclusive breakthrough will be bullish and push the stock upwards to Rs 3,750 and to Rs 4,000 in the medium-term. Investors with medium-term perspective can prolong their long holdings with a stop-loss at Rs 3,000 levels
A downward reversal from Rs 3,600 will confine the stock to hovering sideways between Rs 3,450 and Rs 3,600.
A strong decline below Rs 3,450 can drag the stock lower to Rs 3,350 and to Rs 3,250 in the short-term. Supports below these levels are at Rs 3,150 and Rs 3,000.
Tata Steel (Rs 424)
Tata Steel climbed 1.5 per cent in the previous week in the midst of volatility. Short-term trend will continue to be bullish as long as the stock trades above Rs 370 levels.
The stock is currently testing resistance at Rs 423. A decisive rally above this level is required to reinforce bullish momentum and take the stock upwards to the resistance zone between Rs 440 and Rs 450.
The daily volumes are decreasing. Indicators in the daily chart are sloping downwards signalling divergence inthe stock price, indicating a short-term trend reversal. Weekly indicators are featuring in the overbought territory.
Therefore, traders with a short-term horizon should thread with caution in the ensuing week.
Important support levels to watch are at Rs 410 and Rs 400. Slump below Rs 400 can drag the stock down to Rs 386 levels.
Since August 2013 low of Rs 195, the stock has been on a medium-term uptrend.
Investors can consider holding the long positions with a stop-loss at Rs 320.
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