http://www.thehindubusinessline.com/iw/2010/05/30/stories/2010053051310900.htm
*Pivotals: Reliance Industries (Rs 1,033.8) * ** ** ** ** ** ** ** ** ** It was an extremely volatile period for Reliance Industries in May as the stock spiked to Rs 1,093.6 and then crashed towards our lower medium-term target of Rs 966. The short-term trend in the stock is down since the May 13 peak of Rs 1,093. The stock needs to close above Rs 1,050 to signal the beginning of a sustainable uptrend. Presence of the 200-day simple moving average at that level also makes it a significant resistance. Traders with a short-term trading perspective can hold their short positions with stop at Rs 1,050. Subsequent targets for the stock are at Rs 1,000 and Rs 976. As we have noted before, the stock is in a medium-term range between Rs 1,200 and Rs 950. The stock has strong support at Rs 950 that occurs at 38.2 per cent retracement of the up-move from October 2008 low. If this level is breached, next retracement support is at Rs 860. *State Bank of India (Rs 2,235.3)* State Bank of India grappled with the resistance at Rs 2,300 through May and failed to make much progress beyond it. It moved in a band between Rs 2,150 and Rs 2,350 instead. The sideways movement with a negative bias recorded in May implies that the medium-term uptrend from the February lows continues to be in force. The stock also continues to hold above the medium-term trend line that is positioned at Rs 2,150. Investors can therefore hold the stock with stop at Rs 2,110. Reversal above this level can take the stock to Rs 2,350 or Rs 2,500 over the medium-term. We stay with the medium-term view that the stock could move sideways in the wide band between Rs 1,900 and Rs 2,500. Investors can watch out for buying opportunity close to the lower end of this band. *Tata Steel (Rs 496.1)* In our edition dated May 2, 2010, we had indicated that the medium-term outlook for this stock had deteriorated and it could head lower to Rs 490 in this period. Tata Steel declined below this target to Rs 474 last week. Though the stock tried to stabilise itself around Rs 480 last week, this halt is not convincing enough. It can face resistance at Rs 526 or Rs 550 in the days ahead. Failure to move above the first resistance would be the cue for short-term traders to initiate fresh short positions. A medium-term downtrend is currently on in Tata Steel and it needs to close above Rs 560 to reverse this trend. Else, the stock can head lower to Rs 440 or Rs 410 in the days ahead. *Infosys Technologies (Rs 2,674.9)* Infosys Technologies declined to the support zone between Rs 2,520 and Rs 2,500 indicated towards the beginning of May and rebounded from there to reiterate that it remains in a strong medium-term uptrend. We stay with the view that the stock needs to record a close below Rs 2,300 to indicate a reversal in the medium-term uptrend. The short-term uptrend from the Rs 2,510 low has the targets of Rs 2,706 and Rs 2,734. Investors holding short-term trading positions should exercise caution around these levels. Supports for the week ahead are at Rs 2,618 and Rs 2,578. — Lokeshwarri S.K -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
