Pivotals: Reliance Industries, State Bank of India, Infosys, Tata Steel bl-premium-article-image

GURUMURTHY K. Updated - November 23, 2017 at 02:40 PM.

24Infosys.eps

The stock remained range-bound between Rs 840 and Rs 884 and closed lower by a per cent last week. The 200-week moving average resistance, currently at Rs 883.1, is restricting the upside for the last two weeks. Immediate support is at Rs 840.

But the price action and the sharp pull-back last week leaves the stock vulnerable for a decline to the next support level at Rs 810 in the coming week.

A break below Rs 840 will also mean that the broad Rs 770-950 sideways range is intact. An eventual break of Rs 810 thereafter can take the stock to Rs 770, the lower band of this range.

On the other hand, if Rs 840 holds, then the stock can remain ranged between Rs 840 and Rs 885 in the coming week as well. The targets above Rs 885 are Rs 900 and Rs 925.

State Bank of India (Rs 1,740.3)

The stock failed to sustain the break above Rs 1,800 and has come off from the high of Rs 1,834 to close at Rs 1,740.3 last week. Further dip to Rs 1,700 looks possible in the coming week.

However, the near term trend is not very clear for the stock. Immediate support is seen in the Rs 1,700-1,690 zone, a break below which can take the price lower to Rs 1,650.

On the other hand, if the Rs 1,700-1,690 support zone holds, the stock can rise to Rs 1,850 once again. On the upside, Rs 1,900 is a significant resistance level.

Broadly, the stock can be range-bound between Rs 1,650 and Rs 1,900 for the near-term. A break above Rs 1,900 can take the stock to Rs 2,000 while a decline below Rs 1,650 can take it lower to Rs 1,600.

Infosys (Rs 3,349.3)

Infosys is not gaining momentum to breach the psychological hurdle at Rs 3,400 decisively.

It fell from the intra-week high of Rs 3,447 to close lower at Rs 3,349.3 for the week.

The stock can range between Rs 3,200 and Rs 3,420 in the near term. Within this range, the probability is high for the price to fall to Rs 3,300 immediately and to Rs 3,250 and Rs 3,200 thereafter.

Decline below Rs 3,200 will turn the outlook negative for the targets of Rs 3,100 and Rs 3,000. On the upside, key resistance is at Rs 3,430 which needs to be broken for the up trend to resume.

Targets on a break above this resistance will be Rs 3,500 and Rs 3,600.

Tata Steel (Rs 392)

The strong up trend since August in Tata Steel is nearing a very crucial resistance level which can halt this rally. The key level to watch for is Rs 397 which needs to be breached for the uptrend to remain intact for the next target of Rs 450. However, failure to breach this resistance can trigger a profit-taking pull back in the coming weeks to test the significant support at Rs 370 initially. A bounce from this support will keep alive the chances for the stock to breach the hurdle at Rs 397. But, decline below Rs 370 can take the stock further lower to Rs 350-345. The fact that the stock has risen consecutively in the last few weeks coupled with the current overall market condition, the probability is high for a profit-taking pull back to Rs 350-345 in the coming weeks.

Published on November 23, 2013 16:17