The Hindu Business Line : PIVOTALS: RIL (Rs 2098.7)

The medium-term view on this stock remains negative and if the third part of the move from the Rs 2490 peak has commenced last week, the decline can extend to Rs 1727 or Rs 1667 over the medium term. A strong close above Rs 2200 is needed to make the medium-term view positive for this stock.

That said the short-term view remains positive for this stock.

The stock is halting at the first short-term support that indicates that there can be a short-term rally to Rs 2200 or Rs 2270. Short-term traders can hold their long positions with a stop at Rs 2060. Subsequent supports are at Rs 2045 and Rs 2007.

SBI (Rs 2142.3)

It was a stunning show by SBI last week as the heavyweight zoomed higher to 11 per cent weekly gain. The strong close above the upper boundary of the stock’s trading range at Rs 1950 implies that the stock is now heading towards its previous high of Rs 2395.

If the third leg of the up-move from the March low is currently on, the stock has the targets of Rs 2155 and then Rs 2553. Some caution can therefore be exercised until the stock moves above Rs 2155.

The short-term trend in the stock is extremely buoyant and traders can ride their long positions with a stop at Rs 2040. Upper target for the week ahead is Rs 2315.

Tata Steel (Rs 518)

Tata Steel recorded a strong up-move last week that took it well past our second target to the intra week peak of Rs 545.

Since the stock has moved above the medium-term resistance at Rs 500, subsequent targets for the medium term are Rs 557 and Rs 652.

Extrapolating the move from the March lows gives us the targets of Rs 545 and then Rs 678. In other words, the current rally can end in the zone between Rs 545 and Rs 560.

If it continues, next target is at Rs 652.

The medium-term trend will turn negative only on a close below Rs 400.

There was mild weakness witnessed on this counter over the last two sessions. Supports for the week are at Rs 492 and Rs 460. Fresh long positions should be avoided on a close below the first support.

Infosys (Rs 2,363.8)

Infosys moved in line with our expectation, moving past our first target to the peak of Rs 2388 by Friday.

First target of the intermediate-term up move from the March lows is at Rs 2342.

Since the previous all-time high is also in the vicinity, the rally can face some hiccups in the zone between Rs 2340 and Rs 2450.

If there is an extended third wave that takes off in a vertical move then next medium-term target is Rs 2780. Fresh investments with a medium term perspective are therefore recommended only on a firm close above Rs 2450.

Short-term investors can hold the stock with a stop at Rs 2280. Next supports are at Rs 2256 and Rs 2227.

— Lokeshwarri S.K.

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