Technical Analysis

Pivotals - Reliance Industries

Yoganand D. | Updated on April 28, 2012 Published on April 28, 2012

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RIL was choppy and climbed one per cent last week. It has been trading just above its key support at Rs 723 for the past one month. The stock's short-term trend is down and will continue to be down as long as it trades below Rs 800, which is a vital level. It is trading well below its 50 and 200-day moving averages.

Traders with short-term horizon can consider initiating fresh short positions once the stock falls below Rs 723 with stop-loss at this level. Targets are Rs 700 and Rs 690. Only a conclusive dive below Rs 690 will pull the stock down to its important medium-term support at Rs 675.

Immediate resistance to watch for is at Rs 755. Rally above this level will push the stock to Rs 770. Next hurdles are at Rs 783 and Rs 800 respectively.

Infosys (Rs 2,396.8)

The stock prolonged its volatile movement and formed a dragonfly doji, a bullish candlestick pattern, in the weekly chart. The stock's daily relative strength index is showing positive divergence signalling a potential trend reversal. It can rally in the week ahead. Traders can consider holding their long positions with stop-loss at Rs 2,370 levels. Upside targets are Rs 2,480 and Rs 2,540. Next important resistances are at Rs 2,580 and Rs 2,670.

Nevertheless, a slump below Rs 2,360 will reinforce the stock's medium-term downtrend and drag the stock down to Rs 2,270 and to Rs 2,200.

State Bank of India (Rs 2,131)

Last week, the stock plunged 5.7 per cent with good volumes. It is presently testing key support at 2,130. A strong decline below Rs 2,130 will be cue for initiating fresh short positions while maintaining stop-loss at same level. The stock can decline to Rs 2,050 and to Rs 2,000 in the short-term. Significant short-term resistances are pegged at Rs 2,195 and then at Rs 2,260.

Medium-term uptrend will be mitigated only if the stock declines below Rs 2,000. In that scenario, the stock can slump to Rs 1,890 and to Rs 1,775 levels in the medium-term.

Tata Steel (Rs 463.1)

The stock continued its testing of the key resistance at Rs 470. We restate that short-term traders can initiate fresh long positions only on a decisive jump above Rs 470, while maintaining stop-loss at same level. Targets are Rs 490 and Rs 500. An emphatic rally above Rs 500 will push the stock northwards to Rs 520 and to Rs 540 in the medium-term. Short-term supports are positioned at Rs 454 and Rs 440.

A decisive breakthrough of Rs 440 will accelerate the stock downwards to Rs 420 and to Rs 400 in the forthcoming months.

Published on April 28, 2012
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