Technical Analysis

Pivotals - Reliance Industries (Rs 731.4)

Yoganand D. | Updated on March 09, 2018 Published on April 21, 2012





The stock fell 2.6 per cent for the week and is hovering just above its immediate key support at Rs 723 with a negative bias. Short-term trend is down and will remain so as long as the stock trades below the crucial level of Rs 800. RIL is hovering way below its 50 and 200-day moving averages. Short-term traders can initiate fresh short positions once the stock declines below 723 levels while maintaining a stop at this level. Downside targets will be Rs 700 and Rs 690. Next important medium-term support is at Rs 675.

Resistance for the week ahead is pegged at Rs 755. A move above this level will take the stock higher to Rs 770. Subsequent resistances are at Rs 783 and Rs 800

Infosys (Rs 2,406.2)

Last week the stock was choppy. After testing its long-term support band between Rs 2,360 and Rs 2,380 it bounced up to close on a flat note. The stock's daily indicators are still featuring in the oversold levels. It is testing the lower boundary of the daily Bollinger Bands which implies that it could be oversold. We restate our prior view that short-term traders can initiate fresh long positions with stop at Rs 2,360. Targets are Rs 2,480 and Rs 2,540. Key resistances above Rs 2,540 are at Rs 2,580 and Rs 2,670.

Conversely, an emphatic decline below Rs 2,360 will strengthen the medium-term bearish trend. A decline to Rs 2,270 and Rs 2,200 is possible in the medium-term.

State Bank of India (Rs 2,260.4)

In line with our expectation, the stock climbed higher and added 2 per cent last week. As long as the stock trades above Rs 2,195, short-term traders can consider holding their long positions with stop at the same level. The stock can rally to Rs 2,323 and Rs 2,370. However, decline below Rs 2,195 will diminish the near-term bullish momentum and pull the stock down to Rs 2,130. A further fall below Rs 2,130 will drag the stock down to Rs 2,050 and Rs 2,000.

On the upside, the stock has significant long-term resistance in the band between Rs 2,450 and Rs 2,500. Break through of this band will reinforce its medium-term uptrend. The stock can then trend to Rs 2,600 and Rs 2,700 levels.

Tata Steel (Rs 470.4)

Tata Steel gradually rallied 4.6 per cent last week. It is currently testing a key resistance at Rs 470. Short-term traders can initiate fresh long positions on a strong jump above Rs 470 with stop-loss at the same level. Upside targets are Rs 490 and Rs 500. Conclusive break out above Rs 500 is needed to accelerate the stock higher to Rs 520 and Rs 540 in the medium-term. Immediate key supports are pegged at Rs 454 and Rs 440. A tumble below Rs 440 can drag the stock down to Rs 420 or Rs 400 in the medium-term.

Published on April 21, 2012
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