Pivotals: Reliance, SBI, Infosys and Tata Steel :: Business Line

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Reliance Industries (Rs 814)

The stock advanced 3.8 per cent last week, rebounding up from its key support band between Rs 760 and Rs 780.

The daily and weekly price rate of change indicators are featuring in the positive terrain implying buying interest.

Traders with a short-term perspective can initiate long positions with tight stop-loss at Rs 800.

The stock can trend higher to Rs 836 and to Rs 855 in the near term.

For a clear medium-term trend, the stock needs to decisively move above Rs 855.

In that case, the stock can trend northwards and re-test Rs 900 or Rs 920 levels in the medium-term. But, strong fall below Rs 800 will drag the stock once again to Rs 780 or to Rs 760 support levels.

Subsequent, key supports below Rs 760 are at Rs 736 and Rs 706 levels.

State Bank of India (Rs 2,046.2)

Last week, SBI was choppy and advanced by Rs 23. The stock has been on a short-term downtrend from its May 2013 peak of Rs 2,469.

This downtrend will be in place as long as the stock trades below Rs 2,186 levels.

However, the stock is hovering near a key support band between Rs 1,975 and Rs 2,000.

A fall below this support band will pave way for a decline to Rs 1,944 or Rs 1,900. Subsequent, key support is at around Rs 1,800.

An upward reversal from the current support band between Rs 1,975 and Rs 2,000 can push the stock higher to Rs 2,150 or to Rs 2,186.

The stock has been on a medium-term sideways consolidation in the band between Rs 1,800 and Rs 2,500 from January 2012. We reiterate that the upper boundary needs to be breached to make the long-term view positive.

Next important long-term support below Rs 1,800 is at Rs 1,571.

Infosys (Rs 2,394.9)

Infosys fell Rs 52 after testing key resistance at Rs 2,500 levels in the previous week. Nevertheless, the stock is trading well above its immediate key support at Rs 2,300 level. An upward reversal from the current levels can push the stock northwards to Rs 2,550 or Rs 2,625 in the forthcoming weeks. Medium-term target above Rs 2,625 is Rs 2,700.

Investors with a medium-term perspective can consider buying the stock in declines with stop-loss at Rs 2,200 levels.

Conversely, a strong fall below Rs 2,200 can pull the stock down to Rs 2,000 levels in the medium-term. Immediate resistance for the stock is positioned at Rs 2,500.

Short-term traders should tread with caution as the stock is moving sideways between Rs 2,300 and Rs 2,500.

Tata Steel (Rs 274.1)

Tata Steel tumbled 6 per cent accompanied by good volumes last week . Medium- and short-term trends are down for the stock. There are no clear signs of reversal in the trend. The daily as well as weekly indicators are featuring in the bearish zone. Traders should tread with caution is the ensuing week.

Immediate key resistances are at Rs 290, Rs 300 and Rs 320. As long as the stock trades below Rs 320 levels, its short-term trend remains down. Key support is at Rs 266; a fall below this support will drag the stock down to Rs 250 in the medium-term.