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Sunday, September 27, 2009
PIVOTALS: Reliance Industries (Rs 2,129.8)
RIL scarcely budged last week and remained confined in a narrow band between Rs 2,050 and Rs 2,150. The short-term trend in the stock remains positive since the stock is holding above the short-term support at Rs 2,060. Traders can therefore hold their long positions with a stop at Rs 2,050. The stock can rally to Rs 2,200 or Rs 2,270 in the near-term. Subsequent supports are at Rs 2,045 and Rs 2,007.
The medium-term trend in RIL continues to be down. Failure to penetrate the resistance at Rs 2,200 next week will imply an impending move lower to Rs 1,727 or Rs 1,667 in the medium-term. Swing traders can therefore initiate fresh shorts if the stock reverses below Rs 2,200. Targets on a move above Rs 2,200 will be Rs 2,385 and Rs 2,490.
SBI (Rs 2,139.1)
SBI took a breather after the sharp rally recorded in the previous week, resulting in a doji star in the weekly candlestick chart. The short-term trend continues to be up and traders can hold their long positions with a stop at Rs 2,065. There can be another short-term spurt that takes the stock higher to Rs 2,170, Rs 2,300 or Rs 2,381.
The medium-term trend has turned positive since the stock has recorded a strong close above Rs 1,950. Weekly close below Rs 1,935 is now required to negate this view. Medium-term targets for the stock remain at Rs 2,395 and then Rs 2,553.
Tata Steel (Rs 498.5)
Tata Steel recorded a gentle decline last week and closed 4 per cent lower. Short-term supports for the stock are at Rs 493 and Rs 464. Traders can hang on to their longs until the first support holds. If the stock reverses higher from the current levels, it can go higher to Rs 545 and Rs 577 again in the near-term.
Break-out above Rs 460 was a commendable feat by Tata Steel and the medium-term outlook will stay positive as long as it trades above this level. The stock is however close to the next medium-term resistance at Rs 560. Penetration of this level will make the stock to rally to Rs 660.
Infosys (Rs 2,245.3)
Infosys fleetingly moved past its previous life-time high on NSE while it stopped a hair’s breadth short of this mark on the BSE. There was a wave of selling thereafter that pulled the stock 7 per cent lower from the peak. The stock is currently halting at its first short-term support at Rs 2,235. If this level holds, there can be another upward move towards Rs 2,439 and Rs 2,541.
The medium-term trend too continues to be up and a close below Rs 1,900 is needed to negate this view. Some money can be taken off the table at this juncture since Infosys can consolidate sideways for a few weeks before making the next move.
ONGC (Rs 1,157.3)
ONGC is in an extended range-bound move since the beginning of August. The formation on daily chart appears to be a rounding-top that is a bearish formation. Close beyond Rs 1,250 is needed to mitigate the bearish short-term outlook. Short-term supports are at Rs 1,130 and Rs 1,065. Fresh long positions should be avoided if the stock closes below the first support.
Maruti Suzuki (Rs 1,640.7)Maruti is on an overdrive that is showing no signs of slowing down. The medium-term outlook for the stock will stay positive as long as the stock holds above Rs 1,252. That can act as the stop-loss level for investors. Short-term investors can buy in declines with a stop at Rs 1,590. Upper targets for the week are Rs 1,685 and Rs 1,756. — Lokeshwarri S.K.
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