Reliance Industries (Rs 718.7)
After testing the upper boundary of the near-term sideways trading range between Rs 700 and Rs 742, the stock slipped 2 per cent last week. The stock is currently heading towards the lower boundary at Rs 700. Traders with short-term perspective should tread with caution as long as the stock trades in the aforementioned range. A fall below Rs 700 will alter the short-tem view downwards and the stock can decline to Rs 670 or even to Rs 650 in the medium-term.
But, a conclusive jump above Rs 742 will accelerate the stock upwards to Rs 772 or Rs 792 in the ensuing weeks. Significant medium-term resistance for the stock is at Rs 868.
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Infosys (Rs 2,227.8)
Infosys nose-dived almost 9 per cent in the previous week, this was following the company disappointing investors with lower than expected first quarter results. The stock emphatically broke through its key support at Rs 2,300. It is currently testing the next key support at Rs 2,200. Short-term traders can initiate fresh short position if the stock breaks Rs 2,200 with same stop-loss. In that case downside targets will be Rs 2,090 and Rs 2,000.
Medium-term trend has been down for the stock since the March top of Rs 2,990. As long as the stock trades below Rs 2,600, downtrend remains in place and the stock can decline to Rs 2,000 in the forthcoming months. Short-term resistance are at Rs 2,300 and Rs 2,390.
State Bank of India (Rs 2,179.3)
The stock moved sideways and fell almost 2 per cent in the previous week. The stock’s short-term uptrend is losing its bullish momentum as daily indicators are displaying negative divergence and volumes are diminishing . A dive below Rs 2,100 will be the cue for taking profits off the table and initiating fresh short positions with stop-loss at the same level. The stock can decline to Rs 2,025 and to Rs 1,977. Next medium-term supports are pegged at Rs 1,900 and Rs 1,800.
Nevertheless, a decisive rally above Rs 2,230 will push the stock higher to Rs 2,326 and then to Rs 2,494 in the medium-term.
Tata Steel (Rs 425.6)
Tata Steel slumped almost 5 per cent last week and is testing its 200-day moving average. It is hovering above key support at Rs 420, which is the short-term trend deciding level. Only a strong fall below this level will pull the stock down to Rs 405 or to Rs 395 in the following weeks. Traders with short-term perspective can initiate fresh short position in that scenario with stop-loss at Rs 420.
Key resistance ahead are at Rs 440 and Rs 455. Subsequent resistance is in the Rs 460-470 range. A strong weekly close above Rs 470 is needed to take the stock upwards to Rs 500 in the medium-term.
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