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Reliance (Rs 854.4)
Last week, the stock dipped below its short-term support level of Rs 856 and bounced up. However, it failed to sustain this up move and once again resumed its decline to retest the support. Traders can hold their short positions as long as the stock trades below Rs 875 and maintaining this level as stop loss. Downside targets are Rs 834, Rs 828 and Rs 818. Key resistance are positioned at Rs 888, Rs 907 and Rs 921.
The stock has been on a medium-term downtrend from its April peak of Rs 1065 levels. As long as it trades below Rs 965, this downtrend stays active. A strong move above this level is required to mitigate the downtrend. It is now testing the lower boundary of Rs 850 of its long-term sideways range. Decisive close below this level can pull the stock down to Rs 828 and Rs 741 in the medium-term.
State Bank of India (Rs 2,478.6)
The stock continued with its previous week's gains and ended higher this week by gaining 2.4 per cent. However, it is currently testing its significant medium-term resistance at around Rs 2500. Emphatic surge above this level will pave way for a rally to Rs 2558 and then to Rs 2640 levels. Traders should tread cautiously and initiate fresh long positions only on a strong move above Rs 2500 with tight stop-loss.
However, downward reversal from Rs 2500 can drag the stock down to Rs 2400 and to Rs 2370. Significant support for days ahead is at Rs 2330 levels. Medium-term trend is down for the stock from its November 2010 peak of Rs 3515 levels. A close above Rs 2657 levels is required to mar this down.
Tata Steel (Rs 594.4)
The stock was volatile in the previous week and finished by declining Rs 7.5. In line with our expectations, the stock fell and reached our first target of Rs 591 on Monday. Short-term traders can consider holding their short positions with stop loss at Rs 605. Targets are Rs 585 and then Rs 575. Resistance for the ensuing days are at Rs 610 and Rs 620.
Nevertheless, an up move beyond Rs 620 can lift the stock up to Rs 632 and Rs 651. Medium-term trend remains down for the stock and its key trend deciding level is at Rs 651. The stock has significant medium-term support at Rs 548 and investors need not bother as long as this support holds the stock.
Infosys (Rs 2,977.9)
Infosys increased 1.5 per cent in the previous week. The stock has been on a short-term rally from its June 20 low of Rs 2,660. After retracing 50 per cent Fibonacci retracement level of its prior down move from April peak, the stock has encountered key resistance at Rs 3,000 levels. Traders with short-term perspective should tread with caution and avoid initiating fresh long position as long as the stock traders below this key resistance. Conclusive jump above this resistance will be a cue for initiating fresh long positions. Targets are Rs 3,077 and then Rs 3,176 levels.
Conversely, failure to move above Rs 3,000 can pull the stock down to Rs 2,915-2,900 support zone. Strong fall below this zone can strengthen the stock's medium-term downtrend and pull it down to Rs 2,580 or even to Rs 2,290 in the upcoming months. Key supports for the week are at Rs 2,850 and Rs 2,765 levels
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