18 Nov: Pivotals - SBI, Tata Steel, Infosys, Reliance Industries :: Business Line

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Reliance Industries (Rs 775.4)

The stock continued its downward move in the previous week and ended marginally down by 1.7 per cent. However, the stock is poised above its key support band between Rs 750 and Rs 760. Its 200-day moving average is also hovering around this support. The stock has been on a short-term downtrend from its September 2012 peak of Rs 881. Short-term traders can prolong their short positions with stop-loss at Rs 786 and exit at Rs 750.

A strong decline below Rs 750 will mar its medium-term uptrend and reinforce bearish momentum. Next important supports for the stock are at Rs 725, Rs 710 and Rs 700. As long as the stock trades below Rs 830, its short-term downtrend remains in place. Only a decisive breakthrough of Rs 830 will take the stock higher to Rs 848 and Rs 881 levels in the medium-term. Immediate resistances are at Rs 800 and Rs 815.

Infosys (Rs 2,341.8)

After testing the key support at Rs 2,310, Infosys bounced up 2 per cent on Friday. It was a volatile week for the stock, where it finished forming a spinning top candlestick pattern implying indecisiveness. Hence, traders with a short-term perspective should tread with caution as long as the stock moves sideways in the band between Rs 2,280 and Rs 2,400. The stock’s key resistance above Rs 2,400 is at Rs 2,450. It needs to conclusively rally above Rs 2,450 to signal that its short-term outlook is turning bullish. The stock can trend higher to Rs 2,524 and Rs 2,649 in the medium-term.

But a decisive tumble below the lower boundary at Rs 2,280 will pave the way for a decline to Rs 2,189, Rs 2,101 and Rs 2,030 in the same time frame.

State Bank of India (Rs 2,107.5)

Last week, the stock slipped 2.3 per cent in line with our expectation and is testing its 200-day moving average. Since last month’s peak of Rs 2,363, the stock has been on a short-term downtrend. Traders can consider holding their short positions with revised stop-loss of Rs 2,150. Strong breach of 200-day moving average can pull the stock down to Rs 2,026 and Rs 2,000.

Important supports below Rs 2,000 are positioned at Rs 1,940 and Rs 1,900 levels. Key resistances are positioned at Rs 2,230, Rs 2,290 and Rs 2,360. But only a conclusive move beyond Rs 2,290 will revise the stock’s short-term downtrend and take it to Rs 2,360.

Tata Steel (Rs 370)

The stock continued its short-term downtrend by plummeting 5 per cent in the week ago. It has been on a short-term downtrend from its October high of Rs 426 levels. The stock is trading well below its 21- and 50-day moving averages. The daily indicators are featuring in the bearish zone and weekly indicators are entering this zone indicating continuation of bearish momentum.

Short-term traders can consider continue holding their short positions with stop-loss at Rs 380. Targets are Rs 363 and Rs 350. Next important medium-term support is pegged at Rs 335. To modify the stock’s short-term downtrend, it needs to make an up move above Rs 400. Resistances are at Rs 390, Rs 400 and Rs 420 levels.