Reliance Industries (Rs 882.6)
The stock extended its testing of key resistance at Rs 890 in the previous week as well, in line with our expectation. Short-term trend is up for the stock. The stock is hovering well above its 200-day moving averages. Short-term traders can prolong their long holdings with stop-loss at Rs 850. Only a strong breakthrough of Rs 890 will push the stock upwards to Rs 920 levels. Subsequent important resistances are positioned at Rs 940 and Rs 955.
However, tumble below Rs 850 will drag the counter lower to Rs 830 initially and then to Rs 800 and Rs 810 support band. Next support below Rs 800 is pegged at Rs 770 and Rs 780 band. In the medium-term, the stock is in a broad sideways consolidation between Rs 770 and Rs 920.
State Bank of India (Rs 1,746.5)
State Bank of India was volatile in the week ago but advanced 5 per cent with good volume. The daily relative strength index is featuring in the bullish zone and the weekly RSI has entered the neutral region from the bearish zone. Short-term trend is turning positive. Only a decisive fall below Rs 1,600 will mar this up trend and pull the stock down to its key support in the band between Rs 1,500 and Rs 1,510. Next base level is around Rs 1,400.
Traders with short-term perspective can consider initiating fresh long positions with tight stop-loss only if the stock advances above Rs 1,800 level. Then, the stock can trend higher to Rs 1,900 levels. Subsequent key resistance is at Rs 2,000. The stock needs to breach Rs 2,000 to alter its medium-term downtrend.
Infosys (Rs 2,995.5)
The stock is trading within the sideways consolidation band between Rs 2,950 and Rs 3,130. The stock’s daily indicators are displaying negative divergence indicating downward reversal is on the cards. A decisive plunge below Rs 2,950 will be the cue for initiating fresh short positions with the same as stop-loss. The stock can decline to Rs 2,900 and then to Rs 2,800.
Nevertheless, the stock’s medium-term trend will remain up as long as it hovers above Rs 2,600 levels. An emphatic rally above its immediate resistance at Rs 3,130 will pave the way for an up move to Rs 3,225 levels in the medium-term.
Tata Steel (Rs 300.4)
Tata Steel continued its volatile movement in the previous week too and finished marginally higher. It is still testing its significant resistance at Rs 300. Only a decisive breakthrough of this resistance will reinforce bullish momentum and take the stock upwards to Rs 320 and to Rs 340 in the forthcoming weeks. Traders with a short-term perspective should tread with caution in the ensuing week also.
Significant supports are pegged at Rs 290, Rs 274 and then at Rs 260. Short-term trend will remain up as long as the stock hovers above Rs 250. A conclusive fall below Rs 250 will mitigate its uptrend and pull the stock down to Rs 230 level.
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