RIL reversed higher from the lower boundary of its sideways trading range at Rs 840 and gained 3 per cent last week . The stock has breached its21- and 50-day moving average. However, it is now testing the upper boundary of its sideways trading range at Rs 885. The indicators in the daily chart are signalling an up move . The company announced its Q3 results after market close on Friday, which beat estimates.

Investors can initiate fresh long position on a strong breakthrough of the current resistance and upper boundary at Rs 885, with stop loss at the same level. Targets are Rs 910 and Rs 930.

On the other hand, inability to surpass Rs 885 will extend the stock’s sideways movement. Important supports are at Rs 865 and Rs 840. Subsequent supports are at Rs 820 and Rs 800. There has been no change in the stock’s medium-term sideways move between Rs 770 and Rs 930.

State Bank of India (Rs 1,622)

The stock moved sideways, hoveringaround the significant support at Rs 1,600 last week. The short-term trend has been down since its December 2013 peak of Rs 1,920. SBI is hovering way below its 50- and 200-day moving averages. Indicators in the daily chart continue to signal downward momentum. An emphatic fall below the aforementioned support will be an indication to initiate fresh short position with same level as stop-loss. The stock can test its subsequent key support at Rs 1,500 in the coming weeks. A decisive tumble below Rs 1,500 will reinforce the medium-term downtrend and drag the stock lower to Rs 1,409.

Conversely, if the stock rebounds from Rs 1,600, it can see a corrective up move to Rs 1,650 or Rs 1,700. Key resistances beyond these levels are at Rs 1,810 and Rs 1,920.

Infosys (Rs 3,728)

Infosys made a bright start last week, surpassing the key resistance at Rs 3,600 and gained 5 per cent. The stock is now near the medium-term price target of Rs 3,750 mentioned in this column last week. The stock needs some time to gasp before it heads to the Rs 4,000-mark in the medium-term.

Therefore, investors with short as well as medium-term investment horizon can book some profits at this juncture. The indicators in the weekly chart have entered the overbought levels signalling a corrective fall in the coming weeks. A downward reversal from Rs 3,750 can take the stock lower to Rs 3,600 in the near term. Important supports below this level are pegged at Rs 3,450, Rs 3,350 and Rs 3,250.

The medium-term trend is up. The stock can extend this trend if it decisively breaches Rs 3,750 and reaches Rs 4,000. Investors with medium-term perspective can hold the stock with revised a stop-loss at Rs 3,150.

Tata Steel (Rs 377.5)

The stock slipped 1.8 per cent last week, and breached its key support at Rs 380. Next important level is at Rs 370. Short term traders should avoid taking fresh positions as long as the stock trades above Rs 370. The stock is hovering well below its 21- and 50-day moving average. Indicators in the daily chart are featuring in the negative territory implying bearish momentum.

A conclusive decline below Rs 370 will be an indication to initiate short position with same level as stop-loss. In such a scenario, the stock can fall to Rs 360 and Rs 350. Important supports below Rs 350 are at Rs 333 and Rs 320.

A strong rally above Rs 400 is required to signal a bullish momentum and take the stock northwards to Rs 410 and Rs 423. Investors with medium-term horizon can consider booking partial profits and hold the rest, with a stop-loss at Rs 320.

Related Topics
comment COMMENT NOW