Technical Analysis

Pivotals - Reliance Industries (Rs 842.1)

Yoganand D. | Updated on February 11, 2012 Published on February 11, 2012





The stock was volatile in the previous week and has formed a doji candlestick indicating neutral stance in the weekly charts.

It is currently testing the key resistance band between Rs 845 and Rs 850. Short-term traders should tread with caution as long as the stock tests this resistance band.

An emphatic jump above Rs 850 will take the stock northwards to Rs 880 and Rs 900 in the ensuing weeks. Resistance above Rs 900 is at Rs 950.

But a reversal down from the current resistance band will pull the stock down to Rs 817 and Rs 795.

As long as the stock trades above Rs 760, its short-term uptrend remains in place.

A fall below Rs 760 can drag the stock down to Rs 730. The stock has significant medium-term support at Rs 700.

Infosys (Rs 2,782.7)

Infosys vacillated between Rs 2,714 and Rs 2,820 and ended at almost same the level as the week ago. However, the short-term trend continues to be up for the stock from its January low of Rs 2,555.

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

Near-term supports are at Rs 2,725 and Rs 2,686. Short-term traders can initiate fresh long positions if the stock reverses higher from the first support level. Targets are at Rs 2,820 and Rs 2,864.

Nevertheless, a tumble below Rs 2,686 will pull the stock down to Rs 2,660 and to Rs 2,600. Next supports are at Rs 2,585 and Rs 2,555.

Medium-term trend remains up for the stock.

Investors with a medium-term perspective can prolong their long positions with stop-loss at Rs 2,467. A strong up move beyond Rs 2,900 can take the stock higher to Rs 3,000.

State Bank of India (Rs 2,172.5)

SBI rose 3.3 per cent breaching the immediate resistance at Rs 2,100 in the previous week. But it is facing its next resistance at Rs 2,220. Daily indicators are losing their bullish momentum and displaying negative divergence.

Short-term traders can take profits off the table at this juncture.

A fall below the support level of Rs 2,100 can pull the stock downwards to Rs 2,000. Resistances are pegged at Rs 2,220 and Rs 2,270. The next medium-term resistance for SBI is at Rs 2,330.

The stock's short-term uptrend will stay in place as long as it trades above Rs 1,830 levels.

Significant supports below Rs 1,830 are at Rs 1,762 and Rs 1,715.

Tata Steel (Rs 475)

The stock's 5.3 per cent surge on Friday with surprising volume helped it recoup its loss in the initial part of the week and managed to close 1.7 per cent higher.

It faces resistance at Rs 485. A strong rally above Rs 485 is needed for the stock to reinforce the bullish momentum and take it upwards to Rs 504 and then to Rs 520 in the medium-term. Traders with short-term perspective can initiate fresh long positions only if the stock climbs above Rs 485 levels.

Significant supports for the stock are positioned at Rs 443 and Rs 420.

A decisive decline below Rs 405 will mar the stock's short-term uptrend that has been in place from its January low of Rs 332. In that case, the stock can find support at Rs 390 or at Rs 365.

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Published on February 11, 2012
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