Technical Analysis

High Five

D Yoganand | Updated on January 26, 2014 Published on January 26, 2014

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SBI (₹ 1,621.9)

After a choppy session, SBI closed flat for the week. The short-term trend is down for the stock. The stock is hovering just above its key support at ₹1,600. A decisive fall below this support, can take the stock lower to ₹1,500 in the short-term. Traders can initiate fresh short position in that scenario with a stop-loss at ₹1,600. Next important support below ₹1,500 is at ₹1,409. On the other hand, a strong move above ₹1,810 can take the stock higher to ₹1,920. Immediate resistances are at ₹1,650 and ₹1,700.

ITC (₹324.2)

ITC has been on a medium-term downtrend from its all-time high of ₹380 registered in July 2013. However, the short-term trend is in a sideways movement in the band between ₹308 and ₹330. Short-term traders can desist trading in the stock as long as it trades in this band. A strong move above the upper boundary at ₹330 can take the stock to ₹340 and then to ₹355. But a strong fall below ₹308 can drag ITC to ₹297 in the short-term. Next key support is at ₹285.

Infosys (₹ 3,759)

The stock advanced ₹31 last week and is testing the resistance at ₹3,750. Only a decisive breakthrough of this resistance will take the stock northwards to ₹4,000 in the medium-term. Inability to move above ₹ 3,750 will be cue for taking profits off the table. Important supports to watch are at ₹3,600, ₹3,450 and ₹3,350 . The medium to intermediate-term trend has been up for the stock since May 2013. Investors with a medium-term horizon can hold the stock with a stop-loss at ₹3,150.

Reliance Ind (₹ 867)

The Q3 results failed to cheer the stock as it slipped 2 per cent for the week. The stock continues to move in a sideways range between ₹840 and ₹885. Short-term traders should remain cautious as long as the stock trades in this sideways range. Only a clear move on either side will decide the stock’s short-term trend. A break above ₹885 can take RIL to ₹910 and ₹930. But a decisive fall below ₹840 will pave way for a decline to the next supports at ₹820 and ₹ 800. The medium-term trend continues to be sideways between ₹770 and ₹ 930.

Tata Steel (₹ 376.4)

After a volatile session, Tata Steel ended the week by forming a spinning top candlestick pattern implying indecisiveness. The shortterm trend is currently down for the stock. The indicators in the daily chart have re-entered the bearish zone from the neutral region. Fresh short position can be initiated with a stop-loss only if the stock declines below ₹370. Targets are ₹360 and ₹350. Next key supports are at ₹333 and ₹320. Conversely, a rally above ₹400 can take the stock northwards to ₹410 and ₹ 423.

Published on January 26, 2014
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